IDEAS home Printed from https://ideas.repec.org/p/ssb/dispap/189.html
   My bibliography  Save this paper

Structural Adjustment and Soil Degration in Tanzania: A CGE-model Approach with Endogenous Soil Productivity

Author

Listed:

Abstract

In this paper, a model of the nitrogen cycle in the soil is incorporated in a Computable General Equilibrium (CGE) model of the Tanzanian economy, thus establishing a two way link between the environment and the economy. For a given level of natural soil productivity, profit maximising farmers choose a production technique and the optimal production volume, which in turn influences the soil productivity the following years through the recycling of nitrogen from the residues of roots and stover and the degree of erosion. The model is used to simulate the effects of typical structural adjustment policies: a reduction in agro-chemicals subsidies, reduced implicit export tax rate, a devaluation of the currency, a cut in governmental expenditure and a reduction of foreign transfers. The result of a joint implementation is a 9 percent higher GDP level compared to the baseline scenario after 10 years. The effect of soil degradation is found to represent a reduction in the GDP level of more than 5 percent for the same time period.

Suggested Citation

  • Jens Aune & Solveig Glomsrød & Vegard Iversen & Henrik Wiig, 1997. "Structural Adjustment and Soil Degration in Tanzania: A CGE-model Approach with Endogenous Soil Productivity," Discussion Papers 189, Statistics Norway, Research Department.
    • Handle: RePEc:ssb:dispap:189
    as

    Download full text from publisher

    File URL: https://www.ssb.no/a/publikasjoner/pdf/DP/dp_189.pdf
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    CGE-model; soil degradation; economic growth; structural adjustment;
    All these keywords.

    JEL classification:

    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • Q16 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - R&D; Agricultural Technology; Biofuels; Agricultural Extension Services
    • Q24 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Land

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ssb:dispap:189. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: L Maasø (email available below). General contact details of provider: https://edirc.repec.org/data/ssbgvno.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.