Bush encroachment control and risk management in semi-arid rangelands
AbstractWe study the role of bush encroachment control for a farmer’s income and income risk in a stochastic ecological-economic model of grazing management in semiarid rangelands. In particular, we study debushing as an instrument of risk management that complements the choice of an adaptive grazing management strategy for that sake. We show that debushing, while being a good practice for increasing the mean pasture productivity and thus expected income, also increases the farmer’s income risk. The optimal extent of debushing for a risk-averse farmer is thus determined from balancing the positive and negative consequences of debushing on intertemporal and stochastic farm income.
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Bibliographic InfoPaper provided by University of Lüneburg, Institute of Economics in its series Working Paper Series in Economics with number 191.
Length: 38 pages
Date of creation: Dec 2010
Date of revision:
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Web page: http://leuphana.de/institute/ivwl.html
bush encroachment; expected utility; farm income; intertemporal optimization; risk aversion; risk management; semi-arid rangeland;
Find related papers by JEL classification:
- Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics
- Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
This paper has been announced in the following NEP Reports:
- NEP-AGR-2010-12-23 (Agricultural Economics)
- NEP-ALL-2010-12-23 (All new papers)
- NEP-ORE-2010-12-23 (Operations Research)
- NEP-UPT-2010-12-23 (Utility Models & Prospect Theory)
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