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Soil Erosion, Intertemporal Profit, And The Soil Conservation Decision

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  • Pagoulatos, Angelos
  • Debertin, David L.
  • Sjarkowi, Fachurrozi

Abstract

This study developed an intertemporal profit function to determine optimal conservation adoption strategies under alternative scenarios with respect to crop prices, relative yields, discount rates, and other assumptions. Special emphasis was placed on determining from the analysis when the switchover from conventional to soil-conserving practices should take place. Technological change was incorporated by allowing crop yields to vary over time. Our analysis thus provides a new, more precise measurement of the cumulative net benefit differential. The optimal period for switchover from conventional to soil-conservating practices was found to vary depending on the assumptions made about corn prices and discount rates. Empirical results were based on an erosion damage function (EDF) for Western Kentucky corn production.

Suggested Citation

  • Pagoulatos, Angelos & Debertin, David L. & Sjarkowi, Fachurrozi, 1989. "Soil Erosion, Intertemporal Profit, And The Soil Conservation Decision," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 21(02), December.
  • Handle: RePEc:ags:sojoae:30099
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    File URL: http://purl.umn.edu/30099
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    1. Pagoulatos, Angelos & Debertin, David L. & Sjarkowi, Fachrurrozie, 1987. "Soil Erosion and Yield Uncertainty in the Soil Conservation Decision," Agricultural Economics Research Reports 140066, University of Kentucky, Department of Agricultural Economics.
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    Cited by:

    1. Lee, John G. & Lovejoy, Stephen B., 1991. "Integrated Assessment Of Environmental Effects From Agricultural Production," Northeastern Journal of Agricultural and Resource Economics, Northeastern Agricultural and Resource Economics Association, vol. 20(1), April.
    2. Uri, Noel D., 1999. "Energy and the use of conservation tillage in US agriculture," Energy Policy, Elsevier, vol. 27(5), pages 299-306, May.
    3. Amrita Chatterjee & Arpita Ghose, 2016. "A dynamic economic model of soil conservation and drought tolerance involving genetically modified crops," Journal of Social and Economic Development, Springer;Institute for Social and Economic Change, vol. 18(1), pages 40-66, October.
    4. Uri, Noel D., 1998. "Impact of the price of energy on the use of conservation tillage in agriculture in the USA," Applied Energy, Elsevier, vol. 60(4), pages 225-240, August.

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    Resource /Energy Economics and Policy;

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