IDEAS home Printed from https://ideas.repec.org/p/trb/wpaper/1999.09.html
   My bibliography  Save this paper

A Risk Averse Farmer's Soil Conservation Responses to Changes in Wealth and Risk

Author

Listed:
  • Neil Perry

    (School of Economics, La Trobe University)

Abstract

This paper studies the production and soil depletion choices of a risk averse farmer. The study applies a one period, two date model with uncertainty in both production and end-of-period land price. The farmer makes production, and soil depletion choices at date 1 to maximise the expected utility of an increasing, concave, and additively separable Von Neumann-Morgenstern utility function. Comparative static results are signed to investigate how the production and soil depletion choices change with different levels of initial farmer wealth and production and land risk. The paper shows that, given some plausible conditions, a higher level of initial farmer wealth and/or a lower level of production and land risk will not necessary lead to a lower level of output and a lower level of output-induced soil depletion, as previous studies have found. This means that policy changes which increase farmer wealth and/or reduce risk can lead to an increase in soil degradation.

Suggested Citation

  • Neil Perry, 1999. "A Risk Averse Farmer's Soil Conservation Responses to Changes in Wealth and Risk," Working Papers 1999.09, School of Economics, La Trobe University.
  • Handle: RePEc:trb:wpaper:1999.09
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    More about this item

    Keywords

    Farms; Environment; Agriculture;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:trb:wpaper:1999.09. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Stephen Scoglio). General contact details of provider: http://edirc.repec.org/data/sblatau.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.