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Measuring the Environmental Impacts of Economic Change: The Case of Land Degradation in Philippine Agriculture

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  • IAN A. COXHEAD
  • Gerald Shively

Abstract

We evaluate the on-site land degradation effects of economic changes occurring both within agriculture and elsewhere in the Philippine economy, simulated with the APEX applied general equilibrium model. We derive changes in land degradation rates from changes in land use in rainfed annual crops, using Philippine data on upland erosion under a range of crops, rainfall patterns and slopes. In general equilibrium, land degradation rates are affected by endogenous price changes as well as by direct interventions in agriculture and agricultural processing sectors. We examine the effects of technical progress in corn, and of a capital subsidy to the rice and corn milling sector. Using the nutrient replacement cost method, we calculate the value of changes in land degradation rates and compare them with GDP, government expenditures, and other aggregates used by policy makers.
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  • IAN A. COXHEAD & Gerald Shively, 1995. "Measuring the Environmental Impacts of Economic Change: The Case of Land Degradation in Philippine Agriculture," Wisconsin-Madison Agricultural and Applied Economics Staff Papers 384, Wisconsin-Madison Agricultural and Applied Economics Department.
    • Handle: RePEc:wop:wisaes:384
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    References listed on IDEAS

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    1. Hazilla, Michael & Kopp, Raymond J, 1990. "Social Cost of Environmental Quality Regulations: A General Equilibrium Analysis," Journal of Political Economy, University of Chicago Press, vol. 98(4), pages 853-873, August.
    2. David, Wilfredo P., 1988. "Soil and Water Conservation Planning: Policy Issues and Recommendations," Philippine Journal of Development JPD 1988 Vol. XV No. 1-c, Philippine Institute for Development Studies.
    3. Warr, Peter G. & Coxhead, Ian A., 1993. "The Distributional Impact of Technical Change in Philippine Agriculture: A General Equilibrium Analysis," Food Research Institute Studies, Stanford University, Food Research Institute, vol. 22(3), pages 1-22.
    4. Ian Coxhead & Sisira Jayasuriya, 1994. "Technical Change in Agriculture and Land Degradation in Developing Countries: A General Equilibrium Analysis," Land Economics, University of Wisconsin Press, vol. 70(1), pages 20-37.
    5. Kokoski, Mary F & Smith, V Kerry, 1987. "A General Equilibrium Analysis of Partial-Equilibrium Welfare Measures: The Case of Climate Change," American Economic Review, American Economic Association, vol. 77(3), pages 331-341, June.
    6. Edwards, Sebastian & van Wijnbergen, Sweder, 1987. "Tariffs, The Real Exchange Rate and the Terms of Trade: On Two Popular Propositions in International Economics," Oxford Economic Papers, Oxford University Press, vol. 39(3), pages 458-464, September.
    7. Francisco, Herminia A. & Cruz, Wilfrido & Conway, Zenaida T., 1988. "The On-Site and Downstream Costs of Soil Erosion," Working Papers WP 1988-11, Philippine Institute for Development Studies.
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    Cited by:

    1. Bandara, Jayatilleke S. & Coxhead, Ian, 1999. "Can Trade Liberalization Have Environmental Benefits in Developing Country Agriculture? A Sri Lankan Case Study," Journal of Policy Modeling, Elsevier, vol. 21(3), pages 349-374, May.
    2. Shively, Gerald E., 1997. "Consumption risk, farm characteristics, and soil conservation adoption among low-income farmers in the Philippines," Agricultural Economics, Blackwell, vol. 17(2-3), pages 165-177, December.
    3. IAN COXHEAD & Agnes Rola, 1999. "Do National Markets and Price Policies Affect Land Use at the Forest Margin? Evidence from the Philippines," Wisconsin-Madison Agricultural and Applied Economics Staff Papers 426, Wisconsin-Madison Agricultural and Applied Economics Department.
    4. Ian A. COXHEAD, 1995. "Economic Modeling Of Land Degradation In Developing Countries," Staff Papers 385, University of Wisconsin Madison, AAE, revised May 1996.
    5. Coxhead, Ian, 2000. "Consequences of a Food Security Strategy for Economic Welfare, Income Distribution and Land Degradation: The Philippine Case," World Development, Elsevier, vol. 28(1), pages 111-128, January.
    6. Pande, V.C. & Kurothe, R.S. & Singh, H.B. & Tiwari, S.P., 2011. "Incentives for Soil and Water Conservation on Farm in Ravines of Gujarat: Policy Implications for Future Adoption," Agricultural Economics Research Review, Agricultural Economics Research Association (India), vol. 24(1), June.
    7. Angelsen, Arild & Kaimowitz, David, 1999. "Rethinking the Causes of Deforestation: Lessons from Economic Models," The World Bank Research Observer, World Bank Group, vol. 14(1), pages 73-98, February.

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