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Optimal soil management and environmental policy

Author

Listed:
  • Gilles Lafforgue

    (INRA-LERNA, University of Toulouse)

  • Walid Oueslati

    (INH)

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

Suggested Citation

  • Gilles Lafforgue & Walid Oueslati, 2007. "Optimal soil management and environmental policy," Economics Bulletin, AccessEcon, vol. 17(3), pages 1-10.
    • Handle: RePEc:ebl:ecbull:eb-06q00004
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    References listed on IDEAS

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    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.
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    3. 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.
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    6. 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.
    7. Jeffrey T. LaFrance, 1992. "Do Increased Commodity Prices Lead To More Or Less Soil Degradation?," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 36(1), pages 57-82, April.
    8. 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.

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    More about this item

    Keywords

    environmental policy;

    JEL classification:

    • Q0 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General
    • H4 - Public Economics - - Publicly Provided Goods

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