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Optimal soil management and environmental policy

Author

Listed:
  • Gilles Lafforgue

    (INRA-LERNA, University of Toulouse)

  • Walid Oueslati

    (INH)

Abstract

This paper studies the effects of environmental policy on the farmer's soil optimal management. We consider a dynamic economic model of soil erosion where the intensity use of inputs allows the farmer to control soil losses. Inputs use induces a pollution which is accentuated by the soil fragility. We show, at the steady state, that environmental tax induces a more conservative farmer behavior for soil, but in some cases it can exacerbate pollution. These effects can be moderated when farmer introduces abatement activity.

Suggested Citation

  • Gilles Lafforgue & Walid Oueslati, 2007. "Optimal soil management and environmental policy," Economics Bulletin, AccessEcon, vol. 17(3), pages 1-10.
    • Handle: RePEc:ebl:ecbull:eb-06q00004
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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(1), pages 1-26, April.
    2. Grepperud, S., 1997. "Soil conservation as an investment in land," Journal of Development Economics, Elsevier, vol. 54(2), pages 455-467, December.
    3. 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.
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    5. Renan U. Goetz, 1997. "Diversification in Agricultural Production: A Dynamic Model of Optimal Cropping to Manage Soil Erosion," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(2), pages 341-356.
    6. Kenneth E. McConnell, 1983. "An Economic Model of Soil Conservation," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 65(1), pages 83-89.
    7. Loehman, Edna T. & Randhir, Timothy O., 1999. "Alleviating soil erosion/pollution stock externalities: alternative roles for government," Ecological Economics, Elsevier, vol. 30(1), pages 29-46, July.
    8. Edward B. Barbier, 1990. "The Farm-Level Economics of Soil Conservation: The Uplands of Java," Land Economics, University of Wisconsin Press, vol. 66(2), pages 199-211.
    9. Hediger, Werner, 2003. "Sustainable farm income in the presence of soil erosion: an agricultural Hartwick rule," Ecological Economics, Elsevier, vol. 45(2), pages 221-236, June.
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    Cited by:

    1. Teddie Nakhumwa & Rashid Hassan, 2012. "Optimal Management of Soil Quality Stocks and Long-Term Consequences of Land Degradation for Smallholder Farmers in Malawi," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 52(3), pages 415-433, July.

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    More about this item

    Keywords

    environmental policy;

    JEL classification:

    • Q0 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General
    • H4 - Public Economics - - Publicly Provided Goods

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