A Risk Averse Farmer's Soil Conservation Responses to Changes in Wealth and Risk
AbstractThis paper studies the production and soil depletion choices of a risk averse farmer. The study applies a one period, two date model with uncertainty in both production and end-of-period land price. The farmer makes production, and soil depletion choices at date 1 to maximise the expected utility of an increasing, concave, and additively separable Von Neumann-Morgenstern utility function. Comparative static results are signed to investigate how the production and soil depletion choices change with different levels of initial farmer wealth and production and land risk. The paper shows that, given some plausible conditions, a higher level of initial farmer wealth and/or a lower level of production and land risk will not necessary lead to a lower level of output and a lower level of output-induced soil depletion, as previous studies have found. This means that policy changes which increase farmer wealth and/or reduce risk can lead to an increase in soil degradation.
Download InfoTo our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Bibliographic InfoPaper provided by School of Economics, La Trobe University in its series Working Papers with number 1999.09.
Length: 37 pages
Date of creation: 1999
Date of revision:
Farms; Environment; Agriculture;
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Stephen Scoglio).
If references are entirely missing, you can add them using this form.