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Determination of yield and erosion damage functions using subjectively elicited data: application to smallholder tea in Sri Lanka

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  • Ananda, Jayanath
  • Herath, Gamini
  • Chisholm, Anthony H.

Abstract

Tea has been Sri Lanka’s major export earner for several decades. However, soil erosion on tea‐producing land has had considerable on‐site and off‐site effects. This study quantifies soil erosion impacts for smallholder tea farms in Sri Lanka by estimating a yield damage function and an erosion damage function using a subjective elicitation technique. The Mitscherlich‐Spillman type of function was found to yield acceptable results. The study indicates that high rates of soil erosion require earlier adoption of soil conservation measures than do low rates of erosion. Sensitivity analysis shows the optimum year to change to a conservation practice is very sensitive to the discount rate but less sensitive to the cost of production and price of tea.

Suggested Citation

  • Ananda, Jayanath & Herath, Gamini & Chisholm, Anthony H., 2001. "Determination of yield and erosion damage functions using subjectively elicited data: application to smallholder tea in Sri Lanka," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 45(2), pages 1-15.
    • Handle: RePEc:ags:aareaj:117393
    DOI: 10.22004/ag.econ.117393
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    Cited by:

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    3. Rousseau, Sandra & Telle, Kjetil, 2010. "On the existence of the optimal fine for environmental crime," International Review of Law and Economics, Elsevier, vol. 30(4), pages 329-337, December.

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