This paper explores the economics of land degradation in the rice-shrimp system in the Mekong Delta of Vietnam. A bioeconomic NPV model was developed to evaluate and compare the long-term benefits of alternative production choices and farm technologies. There is an alternative rice-shrimp technology emerging in Vietnam that does not have the same land degrading impacts as the 'traditional' system, however the high capital outlay and risk associated with such technology presents its own problems. In the paper the economic incentives for adoption of the non-land degrading rice-shrimp technology are explored. Conclusions are drawn with regard to the opportunity cost of land degradation and technological change. Some conclusions are also provided on the policy implications arising from the results presented.


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