Spatially and Intertemporally Efficient Management of Waterlogging
AbstractAgricultural production is as a major contributor to numerous environmental problems. Most of these problems have a dynamic aspect and, moreover, the magnitude of these environmental problems depends on the distribution of the characteristics of the land. Therefore, policies designed to establish the social outcome need to be simultaneously targeted site specifically and time specifically. This paper integrates both aspects and presents a theoretical model that allows us to determine the socially optimal outcome over time and space. Moreover, the applicability of our approach, defined as optimal control in two stages, is demonstrated by reformulating the mathematical model such that it can be solved with standard mathematical software. For this purpose, we present an empirical study based on the cotton produced in the San Joaquin Valley in California and determine the socially optimal water price in the presence of waterlogging.
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Bibliographic InfoPaper provided by Department of Economics, University of Girona in its series Working Papers of the Department of Economics, University of Girona with number 9.
Date of creation: Jan 2004
Date of revision:
Uncertainty; water use; irrigation technologies; land heterogeneity; optimal control; differentiated policies; uniform policies;
Find related papers by JEL classification:
- Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy
- Q24 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Land
- H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
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- Farhed Shah & David Zilberman & Erik Lichtenberg, 1995. "Optimal combination of pollution prevention and abatement policies: The case of agricultural drainage," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 5(1), pages 29-49, January.
- 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.
- Khanna, Madhu & Isik, Murat & Zilberman, David, 2002. "Cost-effectiveness of alternative green payment policies for conservation technology adoption with heterogeneous land quality," Agricultural Economics, Blackwell, vol. 27(2), pages 157-174, August.
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