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The Optimal Intertemporal Management of the Soil and Phosphorus and the Equilibrium in Economic and Biophysical Models

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  • Goetz, Renan-Ulrich
  • Keusch, Alois

Abstract

The paper proposes the use of meta models to determine the optimal intertemporal management of soil and phosphorus losses from agricultural land. This approach allows finding a equilibrium of the economic and biophysical system simultaneously. In contrast to the existing literature the model takes account of nonlinear relationships and of a large number of agricultural activities. The mathematical problems arising from this complex setup are addressed and the model is solved numerically. The results show that the second best policy in form of soil protection scores is highly inefficient, while another second best policy in form of land-use taxes is nearly as efficient as the first best policy.

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File URL: http://purl.umn.edu/24783
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Bibliographic Info

Paper provided by European Association of Agricultural Economists in its series 2002 International Congress, August 28-31, 2002, Zaragoza, Spain with number 24783.

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Date of creation: 2002
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Handle: RePEc:ags:eaae02:24783

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Related research

Keywords: Soil erosion; Phosphorus runoffs; Land-use tax; Soil protection scores; Dynamic optimization; Resource /Energy Economics and Policy;

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  1. Andrew Moxey & Ben White, 1994. "Efficient Compliance With Agricultural Nitrate Pollution Standards," Journal of Agricultural Economics, Wiley Blackwell, vol. 45(1), pages 27-37.
  2. Moore, Walter B. & McCarl, Bruce A., 1987. "Off-Site Costs Of Soil Erosion: A Case Study In The Willamette Valley," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 12(01), July.
  3. P. G. Lakshminarayan & P W. Gassman & A. Bouzaher & R. C. Izaurralde, 1996. "A Metamodeling Approach to Evaluate Agricultural Policy Impact on Soil Degradation in Western Canada," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 44(3), pages 277-294, November.
  4. Renan U. Goetz, 1997. "Diversification in Agricultural Production: A Dynamic Model of Optimal Cropping to Manage Soil Erosion," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(2), pages 341-356.
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