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Agricultural Land Retirement and Slippage: Lessons from an Australian Case Study

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  • Iain Fraser
  • Robert Waschik

Abstract

This paper uses a Computable General Equilibrium (CGE) model to examine the economic implications of agricultural land retirement from wool production for conservation in Australia. Employing an innovative specific-factors characterization of production to generate short-run and long-run results, we show that the potential welfare gains from land retirement can be significant. However, in several scenarios examined we find that slippage in agricultural production is significant, resulting in reduced welfare. Our slippage results provide insights into the relationship between the potential causes of slippage and describe how a land retirement policy can be designed to minimize this effect.

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File URL: http://le.uwpress.org/cgi/reprint/81/2/206
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Bibliographic Info

Article provided by University of Wisconsin Press in its journal Land Economics.

Volume (Year): 81 (2005)
Issue (Month): 2 ()
Pages:

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Handle: RePEc:uwp:landec:v:81:y:2005:i:2:p206-226

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Web page: http://le.uwpress.org/

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Cited by:
  1. Iain Fraser & Robert Waschik, 2010. "The Double Dividend Hypothesis in a CGE Model: Specific Factors and Variable Labour Supply," Working Papers 2010.02, School of Economics, La Trobe University.
  2. Matthew Freeman & Christopher Anderson, 2013. "Modeling Effort and Lobbying in a Heterogeneous Common Pool Resource Setting," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 56(3), pages 399-414, November.
  3. Fraser, Iain & Waschik, Robert, 2013. "The Double Dividend hypothesis in a CGE model: Specific factors and the carbon base," Energy Economics, Elsevier, vol. 39(C), pages 283-295.
  4. Alix-Garcia, Jennifer M. & Shapiro, Elizabeth N. & Sims, Katharine R. E., 2010. "Forest Conservation and Slippage: Evidence from Mexico's National Payments for Ecosystem Services Program," Staff Paper Series 548, University of Wisconsin, Agricultural and Applied Economics.

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