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Induced Innovation And Land Degradation In Developing Country Agriculture

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  • Ian COXHEAD

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Abstract

With few exceptions, induced innovation theories give little consideration to the role of distortions or externalities as determinants of the commodity or factor biases of innovations demanded by farmers. Nor has the theory devoted much attention to the influence of technical progress, with or without distortions, on the sectoral structure of production. This analysis identifies the demand for innovations as a function of a specific policy setting which conditions and is in turn conditioned by the sectoral structure of production. In this context, when some sectors contribute morethan others to land degradation and soil erosion externalities, the capacity for divergence between privately optimal and welfare-maximizing allocations of research resources - calculated at market and shadow prices respectively - is substantial. In some circumstances it may be optimal to employ research budget allocations as second-best substitutes for Pigouvian taxes.

Suggested Citation

  • Ian COXHEAD, 1996. "Induced Innovation And Land Degradation In Developing Country Agriculture," Staff Papers 398, University of Wisconsin Madison, AAE.
  • Handle: RePEc:wop:wiaesp:398
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    File URL: http://agecon.lib.umn.edu/wis/stpap398.pdf
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    References listed on IDEAS

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    1. Harry R. Clarke, 1992. "The Supply Of Non‚ÄźDegraded Agricultural Land," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 36(1), pages 31-56, April.
    2. Vousden,Neil, 1990. "The Economics of Trade Protection," Cambridge Books, Cambridge University Press, number 9780521346696, May.
    3. Mussa, Michael, 1979. "The two-sector model in terms of its dual : A geometric exposition," Journal of International Economics, Elsevier, vol. 9(4), pages 513-526, November.
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    Cited by:

    1. Martin, Fernando Santos & Noordwijk, Meine van, 2011. "Is native timber tree intercropping an economically feasible alternative for smallholder farmers in the Philippines?," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 55(2), pages 1-16.
    2. Kim, Kwansoo & Barham, Bradford L. & Coxhead, Ian, 2001. "Measuring soil quality dynamics: A role for economists, and implications for economic analysis," Agricultural Economics, Blackwell, vol. 25(1), pages 13-26, June.
    3. Coxhead, Ian, 2000. "Consequences of a Food Security Strategy for Economic Welfare, Income Distribution and Land Degradation: The Philippine Case," World Development, Elsevier, vol. 28(1), pages 111-128, January.
    4. Gerald E. Shively, 2001. "Agricultural Change, Rural Labor Markets, and Forest Clearing: An Illustrative Case from the Philippines," Land Economics, University of Wisconsin Press, vol. 77(2), pages 268-284.
    5. Poudel, D. D. & Midmore, D. J. & Hargrove, W. L., 1998. "An analysis of commercial vegetable farms in relation to sustainability in the uplands of Southeast Asia," Agricultural Systems, Elsevier, vol. 58(1), pages 107-128, September.
    6. Shively, Gerald & Zelek, Charles, 2002. "Linking Economic Policy and Environmental Outcomes at a Watershed Scale," Philippine Journal of Development PJD 2002 Vol. XXIX No. 1-, Philippine Institute for Development Studies.
    7. Coxhead, Ian & Shively, Gerald & Shuai, Xiaobing, 2002. "Development policies, resource constraints, and agricultural expansion on the Philippine land frontier," Environment and Development Economics, Cambridge University Press, vol. 7(02), pages 341-363, May.
    8. Mullen, John D., 2001. "An Economic Persective On Land Degradation Issues," Research Reports 27999, New South Wales Department of Primary Industries Research Economists.
    9. Bayou Demeke & Ian Coxhead, 2005. "The Effect of National Policies and Labor Market on Land Use Decisions in Developing Countries: An Application of Maximum Simulated Likelihood to System of Censored Acreages with Panel Data," Others 0503007, University Library of Munich, Germany.
    10. Shively, Gerald E., 1999. "Prices and Tree Planting on Hillside Farms in Palawan," World Development, Elsevier, vol. 27(6), pages 937-949, June.

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