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Optimal Soil Management and Environmental Policy

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  • Gilles Lafforgue

    (Institut National d’Horticulture)

  • Walid Oueslati

    (Institut National d’Horticulture)

Abstract

This paper studies the effects of environmental policy on the farmer’s soil optimal management. We consider a dynamic economic model of soil erosion where the intensity use of inputs allows the farmer to control soil losses. Therefore, inputs use induces a pollution which is accentuated by the soil fragility. We show, at the steady state, that the environmental tax induces a more conservative farmer behavior for soil, but in some cases it can exacerbate pollution. These effects can be moderated when farmers introduce abatement activity.

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Bibliographic Info

Paper provided by Fondazione Eni Enrico Mattei in its series Working Papers with number 2005.114.

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Date of creation: Sep 2005
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Handle: RePEc:fem:femwpa:2005.114

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Keywords: Soil erosion; Pollution; Environmental policy; Optimal soil conservation; Abatement activities;

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  1. Goetz, Renan U. & Zilberman, David, 2000. "The dynamics of spatial pollution: The case of phosphorus runoff from agricultural land," Journal of Economic Dynamics and Control, Elsevier, vol. 24(1), pages 143-163, January.
  2. Barrett, Scott, 1991. "Optimal soil conservation and the reform of agricultural pricing policies," Journal of Development Economics, Elsevier, vol. 36(2), pages 167-187, October.
  3. Grepperud, S., 1997. "Soil conservation as an investment in land," Journal of Development Economics, Elsevier, vol. 54(2), pages 455-467, December.
  4. Jeffrey T. LaFrance, 1992. "Do Increased Commodity Prices Lead To More Or Less Soil Degradation?," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 36(1), pages 57-82, 04.
  5. Loehman, Edna T. & Randhir, Timothy O., 1999. "Alleviating soil erosion/pollution stock externalities: alternative roles for government," Ecological Economics, Elsevier, vol. 30(1), pages 29-46, July.
  6. 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.
  7. Hediger, Werner, 2003. "Sustainable farm income in the presence of soil erosion: an agricultural Hartwick rule," Ecological Economics, Elsevier, vol. 45(2), pages 221-236, June.
  8. Edward B. Barbier, 1990. "The Farm-Level Economics of Soil Conservation: The Uplands of Java," Land Economics, University of Wisconsin Press, vol. 66(2), pages 199-211.
  9. 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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