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Optimal Soil Management and Environmental Policy

Author

Listed:
  • Gilles Lafforgue

    (Institut National d’Horticulture)

  • Walid Oueslati

    (Institut National d’Horticulture)

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

Suggested Citation

  • Gilles Lafforgue & Walid Oueslati, 2005. "Optimal Soil Management and Environmental Policy," Working Papers 2005.114, Fondazione Eni Enrico Mattei.
    • Handle: RePEc:fem:femwpa:2005.114
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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.
    2. Barrett, Scott, 1991. "Optimal soil conservation and the reform of agricultural pricing policies," Journal of Development Economics, Elsevier, vol. 36(2), pages 167-187, October.
    3. Renan U. Goetz, 1997. "Diversification in Agricultural Production: A Dynamic Model of Optimal Cropping to Manage Soil Erosion," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(2), pages 341-356.
    4. 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.
    5. 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.
    6. Grepperud, S., 1997. "Soil conservation as an investment in land," Journal of Development Economics, Elsevier, vol. 54(2), pages 455-467, December.
    7. Edward B. Barbier, 1990. "The Farm-Level Economics of Soil Conservation: The Uplands of Java," Land Economics, University of Wisconsin Press, vol. 66(2), pages 199-211.
    8. 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.
    9. LaFrance, Jeffrey T., 1992. "Do Increased Commodity Prices Lead To More Or Less Soil Degradation?," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 36(1), pages 1-26, April.
    10. 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.
    Full references (including those not matched with items on IDEAS)

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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

    Soil erosion; Pollution; Environmental policy; Optimal soil conservation; Abatement activities;
    All these keywords.

    JEL classification:

    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q24 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Land
    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy
    • Q52 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Pollution Control Adoption and Costs; Distributional Effects; Employment Effects
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies

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