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The Use of Subsidies to Achieve Efficient Resource Allocation in Upland Watersheds

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  • Hueth, Darrell L.

Abstract

This paper evaluates the use of subsidies to achieve efficient resource utilization, beginning with a discussion of the nature of erosion and methods of estimating rates of erosion. The second section presents a short review of the literature on onsite and offsite erosion damage assessment, which concludes that in tropical regions it is easier at present to identify onsite productivity losses than offsite damages. The next section presents an evaluation of the economic arguments for government intervention, followed by a discussion of possible alternatives to subsidies (such as direct intervention, moral suasion, taxes, and marketable pollution permits) to achieve more efficient resource use.

Suggested Citation

  • Hueth, Darrell L., 1995. "The Use of Subsidies to Achieve Efficient Resource Allocation in Upland Watersheds," IDB Publications (Working Papers) 6301, Inter-American Development Bank.
  • Handle: RePEc:idb:brikps:6301
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    Cited by:

    1. Simula, Markku, 1999. "Trade and Environmental Issues in Forest Production," IDB Publications (Working Papers) 2995, Inter-American Development Bank.
    2. Clifford S. Russell & Philip T. Powell, 1996. "Choosing Environmental Policy Tools: Theoretical Cautions and Practical Considerations," IDB Publications (Working Papers) 25258, Inter-American Development Bank.
    3. Simula, Markku, 2001. "Comercio y medio ambiente en la producción forestal," IDB Publications (Working Papers) 2989, Inter-American Development Bank.
    4. Russell, Clifford S. & Powell, Philip T., 1996. "Choosing Environmental Policy Tools: Theoretical Cautions and Practical Considerations," IDB Publications (Working Papers) 6219, Inter-American Development Bank.
    5. Haltia, Olli & Keipi, Kari, 1997. "Financing Forest Investments in Latin America: The Issue of Incentives," IDB Publications (Working Papers) 6133, Inter-American Development Bank.

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    Keywords

    soil erosion;

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