| Summary: | 碩士 === 國立清華大學 === 經濟學系 === 101 === In order to solve the flooding problem caused by severe land subsidence in south-west coast of Taiwan, this research proposes a subsidy model to encourage the aquaculture farmers fallow their land. By taking the externality induced by pumping groundwater into consideration and using Da-cheng Township in Changhua Country as an example, our study tries to investigate how the subsidy policy might affect the amount of groundwater use, the land subsidence levels, the total government subsidy payment and the avoided damage costs in this area. The simulation results indicate that the benefit-cost ratios generated by our subsidy policies are all higher than that of “Regulation Project of Flood-Prone Areas” . We also find out the benefit-cost ratio will be the highest when the regulation of land subsidence is imposed on the amount of whole town instead of each area. This implies that if the government can solve the land subsidence problem from its very beginning with more flexibility, it can enhance the flood control efficiency.
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