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

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Author Info
Iain Fraser
Robert Waschik

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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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Publisher 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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Find related papers by JEL classification:
C68 - Mathematical and Quantitative Methods - - Mathematical Methods and Programming - - - Computable General Equilibrium Models
Q24 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Land

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This page was last updated on 2009-11-22.


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