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An economic analysis of farm forestry as a means of controlling dryland salinity

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  • Cacho, Oscar J.
  • Greiner, Romy
  • Fulloon, Lachlan

Abstract

Large areas of agricultural land under conventional crops and pastures are at risk of dryland salinisation in Australia. The salinisation problem can be controlled by strategic and large‐scale planting of trees; however, farm forestry enterprises evaluated with conventional discounting techniques do not generally rank as an attractive alternative to annual crops on productive land. In this article, an optimal control model that explicitly accounts for decline or improvement in land quality over a period of 40 years is presented. The optimal area planted to trees and the optimal groundwater‐table trajectory through time are determined under a variety of scenarios. Implications of the results for policy design are discussed.

Suggested Citation

  • Cacho, Oscar J. & Greiner, Romy & Fulloon, Lachlan, 2001. "An economic analysis of farm forestry as a means of controlling dryland salinity," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 45(2), pages 1-24.
    • Handle: RePEc:ags:aareaj:117391
    DOI: 10.22004/ag.econ.117391
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    Cited by:

    1. Crosbie, Russell S. & Hughes, Justin D. & Friend, John & Baldwin, Basil J., 2007. "Monitoring the hydrological impact of land use change in a small agricultural catchment affected by dryland salinity in central NSW, Australia," Agricultural Water Management, Elsevier, vol. 88(1-3), pages 43-53, March.
    2. Hall, N & Greiner, R & Yongvanit, S, 2004. "Adapting modelling systems for salinity management of farms and catchments in Australia and Thailand," Mathematics and Computers in Simulation (MATCOM), Elsevier, vol. 64(3), pages 319-327.
    3. Gowen, Rebecca & Rolfe, John & Donaghy, Peter, 2012. "A bioeconomic model of carbon trading within an Australian grazing enterprise," 2012 Conference (56th), February 7-10, 2012, Fremantle, Australia 124311, Australian Agricultural and Resource Economics Society.
    4. Bennett, Jeffrey W., 2005. "Australasian environmental economics: contributions, conflicts and ‘cop-outs’," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 49(3), pages 1-19.
    5. Graham, Tennille & White, Benedict & Pannell, David J., 2003. "Efficiency Policies for Salinity Management: Preliminary Research from a Spatial and Dynamic Metamodel," 2003 Conference (47th), February 12-14, 2003, Fremantle, Australia 57879, Australian Agricultural and Resource Economics Society.
    6. Bathgate, Andrew D., 2002. "Economic and physical attributes of dryland salinity in NSW: A review," 2002 Conference (46th), February 13-15, 2002, Canberra, Australia 125055, Australian Agricultural and Resource Economics Society.
    7. Graeme J. Doole & Geoff Kaine & Zack Dorner, 2019. "The optimal diffusion of mitigation options for environmental management," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 63(2), pages 354-382, April.
    8. Cacho, Oscar, 2001. "An analysis of externalities in agroforestry systems in the presence of land degradation," Ecological Economics, Elsevier, vol. 39(1), pages 131-143, October.
    9. Beardmore, Leslie & Heagney, Elizabeth & Sullivan, Caroline A., 2019. "Complementary land use in the Richmond River catchment: Evaluating economic and environmental benefits," Land Use Policy, Elsevier, vol. 87(C).
    10. Whitten, Stuart M. & Bennett, Jeffrey W., 2004. "A Bio-Economic Model Of Wetland Protection On Private Lands," 2004 Annual meeting, August 1-4, Denver, CO 20122, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    11. Ullah, Mujib & Cacho, Oscar J., 2001. "Property Rights and Sustainable Land use on a Salinity-affected Catchment," 2001 Conference (45th), January 23-25, 2001, Adelaide, Australia 125985, Australian Agricultural and Resource Economics Society.
    12. Graham, Tennille, 2005. "On the Road to Better Management: An investigation into the benefits of managing the impacts of dryland salinity on roads," 2005 Conference (49th), February 9-11, 2005, Coff's Harbour, Australia 137921, Australian Agricultural and Resource Economics Society.

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