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Agricultural Policies and Soil Degradation in Western Canada: An Agro-Ecological Economic Assessment, Report 1: Conceptual Framework




The trade-off between agricultural production stability and environmental sustainability is a growing concern. The two major Canadian farm income stabilization programs of 1991, GRIP (Gross Revenue Insurance Plan) and NISA (Net Income Stabilization Account), are being considered for their resource neutrality impacts. This report presents a conceptual framework designed to evaluate the environmental impacts of GRIP and NISA, focusing on land use, technology, and soil degradation shifts. The approach involves a multidisciplinary effort to create a system that permits evaluation of important relationships between policy, agricultural production and the environment. The focus is on development of an integrated agro-ecological economic system built around Agriculture Canada's Regional Agricultural Model (CRAM) and the Erosion Productivity Impact Calculator (EPIC) model. CRAM, a risk-neutral, aggregate resource allocation model, is modified to include a more detailed technology specification and producer risk due to production and net return variability. Environmental impact indicator functions are developed using EPIC simulations based on experimental design and metamodeling techniques. The integrated system will be used to evaluate the economic and environmental impacts of alternative policies.

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  • Aziz Bouzaher & Philip W. Gassman & Derald Holtkamp & David Archer & Alicia L. Carriquiry & Jason F. Shogren & Randall Reese & P. G. Lakshminarayan & William H. Furtan & R. César Izaurralde & James K, 1993. "Agricultural Policies and Soil Degradation in Western Canada: An Agro-Ecological Economic Assessment, Report 1: Conceptual Framework," Center for Agricultural and Rural Development (CARD) Publications 93-sr65, Center for Agricultural and Rural Development (CARD) at Iowa State University.
  • Handle: RePEc:ias:cpaper:93-sr65

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    References listed on IDEAS

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    5. Stiglitz, Joseph E & Weiss, Andrew, 1981. "Credit Rationing in Markets with Imperfect Information," American Economic Review, American Economic Association, vol. 71(3), pages 393-410, June.
    6. Zusman, Pinhas, 1976. "The Incorporation and Measurement of Social Power in Economic Models," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 17(2), pages 447-462, June.
    7. Eggertsson,Thrainn, 1990. "Economic Behavior and Institutions," Cambridge Books, Cambridge University Press, number 9780521348911, March.
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