The following paper analyzes the economic and demographic factors determining the conversion of mangroves in the coastal provinces of Thailand to commercial shrimp farming. Mangrove conversion therefore is determined by the returns to shrimp farmers, (i.e. the price of shrimp), the input costs to farming shrimp (e.g. feed price and wages) and the “accessibility” of mangrove areas. Additional exogenous influences, such as income per capita, population growth, and in-migration (i.e. the number of shrimp farms) also are important. Both a mangrove conversion and a shrimp farm expansion relationship are estimated empirically through a panel analysis across 21 coastal provinces of Thailand between 1979–1996. Results show that the price of shrimp, minimum wage, distance from market, feed price, population growth, income per capita, and shrimp-farm density all have important influences on mangrove loss due to shrimp farming in Thailand.