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Determination of yield and erosion damage functions using subjectively elicited data: application to smallholder tea in Sri Lanka

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  • Ananda, Jayanath
  • Herath, Gamini
  • Chisholm, Anthony H.
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    Abstract

    Tea has been Sri Lanka’s major export earner for several decades. However, soil erosion on tea‐producing land has had considerable on‐site and off‐site effects. This study quantifies soil erosion impacts for smallholder tea farms in Sri Lanka by estimating a yield damage function and an erosion damage function using a subjective elicitation technique. The Mitscherlich‐Spillman type of function was found to yield acceptable results. The study indicates that high rates of soil erosion require earlier adoption of soil conservation measures than do low rates of erosion. Sensitivity analysis shows the optimum year to change to a conservation practice is very sensitive to the discount rate but less sensitive to the cost of production and price of tea.

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    Bibliographic Info

    Article provided by Australian Agricultural and Resource Economics Society in its journal Australian Journal of Agricultural and Resource Economics.

    Volume (Year): 45 (2001)
    Issue (Month): 2 (June)
    Pages:

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    Handle: RePEc:ags:aareaj:117393

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    Related research

    Keywords: Crop Production/Industries;

    References

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    1. Harry R. Clarke, 1992. "The Supply Of Non‐Degraded Agricultural Land," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 36(1), pages 31-56, 04.
    2. Coxhead, Ian A. & Jayasuriya, Sisira, 1994. "Trade and Tax Policy Reform and the Environment: The Economics of Soil Erosion in Developing Countries," 1994 Conference (38th), February 8-10, 1994, Wellington, New Zealand 148111, Australian Agricultural and Resource Economics Society.
    3. Segarra, Eduardo & Taylor, Daniel B., 1987. "Farm Level Dynamic Analysis Of Soil Conservation: An Application To The Piedmont Area Of Virginia," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 19(02), December.
    4. LaFrance, Jeffrey T., 1992. "Do Increased Commodity Prices Lead To More Or Less Soil Degradation?," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 36(01), April.
    5. Thampapillai, Dodo J. & Anderson, Jock R., 1994. "A Review of the Socio-Economic Analysis of Soil Degradation Problems for Developed and Developing Countries," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 62(03), December.
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    Cited by:
    1. Rousseau, Sandra & Telle, Kjetil, 2010. "On the existence of the optimal fine for environmental crime," International Review of Law and Economics, Elsevier, vol. 30(4), pages 329-337, December.
    2. Ananda, Jayanath & Herath, Gamini, 2001. "Price and Subsidy Policy on Soil Conservation: Application to Smallholder Tea Growers," Economic Analysis and Policy (EAP), Queensland University of Technology (QUT), School of Economics and Finance, vol. 31(2), pages 99-110, September.
    3. Pande, V.C. & Kurothe, R.S. & Singh, H.B. & Tiwari, S.P. & Kumar, Gopal & Rao, B.K. & Vishwakarma, A.K. & Bagdi, G.L., 2013. "Economic Assessment of Soil Erosion Damage on Smallholder Farms in Marginal Lands of Mahi Ravines in Gujarat," Agricultural Economics Research Review, Agricultural Economics Research Association (India), vol. 26(1).

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