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

Author

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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), June.
  • Handle: RePEc:ags:aareaj:117393
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    References listed on IDEAS

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    1. LaFrance, Jeffrey T., 1992. "Do Increased Commodity Prices Lead To More Or Less Soil Degradation?," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 36(01), April.
    2. Harry R. Clarke, 1992. "The Supply Of Non‐Degraded Agricultural Land," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 36(1), pages 31-56, April.
    3. Thampapillai, Dodo J. & Anderson, Jock R., 1994. "A Review of the Socio-Economic Analysis of Soil Degradation Problems for Developed and Developing Countries," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 62(03), December.
    4. G. C. Kooten & Ward P. Weisensel & E. Jong, 1989. "Estimating the Costs of Soil Erosion in Saskatchewan," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 37(1), pages 63-75, March.
    5. Segarra, Eduardo & Taylor, Daniel B., 1987. "Farm Level Dynamic Analysis Of Soil Conservation: An Application To The Piedmont Area Of Virginia," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 19(02), December.
    6. Ian Coxhead & Sisira Jayasuriya, 1995. "Trade and Tax Policy Reform and the Environment: The Economics of Soil Erosion in Developing Countries," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 77(3), pages 631-644.
    7. Grepperud, Sverre, 1995. "Soil conservation and governmental policies in tropical areas: Does aid worsen the incentives for arresting erosion?," Agricultural Economics of Agricultural Economists, International Association of Agricultural Economists, vol. 12(2), August.
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    Cited by:

    1. Barrett, Christopher B. & Santos, Paulo, 2014. "The impact of changing rainfall variability on resource-dependent wealth dynamics," Ecological Economics, Elsevier, vol. 105(C), pages 48-54.
    2. Pande, V.C. & Kurothe, R.S. & Singh, H.B. & Tiwari, S.P. & Kumar, Gopal & Rao, B.K. & Vishwakarma, A.K. & Bagdi, G.L., 2013. "Economic Assessment of Soil Erosion Damage on Smallholder Farms in Marginal Lands of Mahi Ravines in Gujarat," Agricultural Economics Research Review, Agricultural Economics Research Association (India), vol. 26(1).
    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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    Keywords

    Crop Production/Industries;

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