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Economic Valuation of Recovery and Increased Efficiency in Agricultural Land Use

Author

Listed:
  • A. S. Strokov

    (Russian Academy of National Economy and Public Administration under the President of the Russian Federation (RANEPA))

  • V. S. Krasilnikova

    (Moscow State University)

  • O. V. Cherkasova

    (Federal Research Center for Agrarian Economics and Social Development of Rural Territories, All-Russian Research Institute of Agricultural Economics)

Abstract

— The article analyzes the methodological and practical problems of assessing the effectiveness of agricultural land use. The model used is the integration of the method of assessing the damage from inefficient soil cultivation into the algorithm for assessing the economic efficiency of soil restoration through investment and diversification of agricultural activities. Damage was assessed taking into account the economic loss of soil fertility, and economic efficiency, by comparing the cost estimate of “action/inaction” on degraded lands, taking into account discounted future income. The model has been tested at three levels: Kaliningrad oblast, Ozersky district, and one of the farms of this municipality, where typical soil depletion processes characteristic of the region are presented. Calculations have shown that the transition to a reference farm with higher revenues and profitability is economically justified over a nine-year forecast period only at the level of the district and farm. The restoration of all degraded lands in the Kaliningrad oblast will not pay off. Recommendations for the agrarian policy of the region have been developed, taking into account additional measures to restore soil fertility while maintaining the profitability of agricultural organizations or withdrawing unproductive lands from circulation.

Suggested Citation

  • A. S. Strokov & V. S. Krasilnikova & O. V. Cherkasova, 2022. "Economic Valuation of Recovery and Increased Efficiency in Agricultural Land Use," Studies on Russian Economic Development, Springer, vol. 33(4), pages 447-454, August.
    • Handle: RePEc:spr:sorede:v:33:y:2022:i:4:d:10.1134_s1075700722040128
    DOI: 10.1134/S1075700722040128
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    References listed on IDEAS

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    1. Sartori, Martina & Philippidis, George & Ferrari, Emanuele & Borrelli, Pasquale & Lugato, Emanuele & Montanarella, Luca & Panagos, Panos, 2019. "A linkage between the biophysical and the economic: Assessing the global market impacts of soil erosion," Land Use Policy, Elsevier, vol. 86(C), pages 299-312.
    2. Walpole, Sandra & Sinden, Jack & Yapp, Tim, 1996. "Land Quality as an Input to Production: The Case of Land Degradation and Agricultural Output," Economic Analysis and Policy, Elsevier, vol. 26(2), pages 185-207, September.
    3. Ephraim Nkonya & Alisher Mirzabaev & Joachim von Braun (ed.), 2016. "Economics of Land Degradation and Improvement – A Global Assessment for Sustainable Development," Springer Books, Springer, number 978-3-319-19168-3, December.
    4. Kenneth E. McConnell, 1983. "An Economic Model of Soil Conservation," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 65(1), pages 83-89.
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    Cited by:

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