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Soil Erosion, Intertemporal Profit, and the Soil Conservation Decision

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  • Pagoulatos, Angelos
  • Debertin, David L.
  • Sjarkowi, Fachurrozi

Abstract

This study developed an intertemporal profit function to determine optimal conservation adoption strategies under alternative scenarios with respect to crop prices, relative yields, discount rates, and other assumptions. Special emphasis was placed on determining from the analysis when the switchover from conventional to soil-conserving practices should take place. Technological change was incorporated by allowing crop yields to vary over time. Our analysis thus provides a new, more precise measurement of the cumulative net benefit differential. The optimal period for switchover from conventional to soil-conserving practices was found to vary depending on the assumptions made about corn prices and discount rates. Empirical results were based on an erosion damage function (EDF) for Western Kentucky corn production.

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  • Pagoulatos, Angelos & Debertin, David L. & Sjarkowi, Fachurrozi, 1989. "Soil Erosion, Intertemporal Profit, and the Soil Conservation Decision," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 21(2), pages 55-62, December.
    • Handle: RePEc:cup:jagaec:v:21:y:1989:i:02:p:55-62_00
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    1. Pagoulatos, Angelos & Debertin, David L. & Sjarkowi, Fachrurrozie, 1987. "Soil Erosion and Yield Uncertainty in the Soil Conservation Decision," Agricultural Economics Research Reports 140066, University of Kentucky, Department of Agricultural Economics.
    2. Oscar R. Burt, 1981. "Farm Level Economics of Soil Conservation in the Palouse Area of the Northwest," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 63(1), pages 83-92.
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    1. Lee, John G. & Lovejoy, Stephen B., 1991. "Integrated Assessment Of Environmental Effects From Agricultural Production," Northeastern Journal of Agricultural and Resource Economics, Northeastern Agricultural and Resource Economics Association, vol. 20(1), pages 1-7, April.
    2. Noel D. Uri, 1998. "The Impact of Energy on the Adoption of Conservation Tillage in the United States," Energy & Environment, , vol. 9(5), pages 549-568, August.
    3. Uri, Noel D., 1999. "Energy and the use of conservation tillage in US agriculture," Energy Policy, Elsevier, vol. 27(5), pages 299-306, May.
    4. Amrita Chatterjee & Arpita Ghose, 2016. "A dynamic economic model of soil conservation and drought tolerance involving genetically modified crops," Journal of Social and Economic Development, Springer;Institute for Social and Economic Change, vol. 18(1), pages 40-66, October.
    5. Goetz, Stephan J. & Debertin, David L. & Pagoulatos, Angelos, 1997. "Linkages Between Human Capital and the Environment: Implications for Sustainable Econmic Development," 1997 Occasional Paper Series No. 7 198195, International Association of Agricultural Economists.
    6. Uri, Noel D., 1998. "Impact of the price of energy on the use of conservation tillage in agriculture in the USA," Applied Energy, Elsevier, vol. 60(4), pages 225-240, August.

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