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Optimal Soil Management and Environmental Policy

Author

Listed:
  • Gilles Lafforgue

    (Institut National d’Horticulture)

  • Walid Oueslati

    (Institut National d’Horticulture)

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. Therefore, inputs use induces a pollution which is accentuated by the soil fragility. We show, at the steady state, that the environmental tax induces a more conservative farmer behavior for soil, but in some cases it can exacerbate pollution. These effects can be moderated when farmers introduce abatement activity.

Suggested Citation

  • Gilles Lafforgue & Walid Oueslati, 2005. "Optimal Soil Management and Environmental Policy," Working Papers 2005.114, Fondazione Eni Enrico Mattei.
  • Handle: RePEc:fem:femwpa:2005.114
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    References listed on IDEAS

    as
    1. 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.
    2. Barrett, Scott, 1991. "Optimal soil conservation and the reform of agricultural pricing policies," Journal of Development Economics, Elsevier, vol. 36(2), pages 167-187, October.
    3. 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.
    4. 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.
    5. 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.
    6. Grepperud, S., 1997. "Soil conservation as an investment in land," Journal of Development Economics, Elsevier, vol. 54(2), pages 455-467, December.
    7. 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.
    8. 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.
    9. Goetz, Renan U. & Zilberman, David, 2000. "The dynamics of spatial pollution: The case of phosphorus runoff from agricultural land," Journal of Economic Dynamics and Control, Elsevier, vol. 24(1), pages 143-163, January.
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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.

    More about this item

    Keywords

    Soil erosion; Pollution; Environmental policy; Optimal soil conservation; Abatement activities;

    JEL classification:

    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q24 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Land
    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy
    • Q52 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Pollution Control Adoption and Costs; Distributional Effects; Employment Effects
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies

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