Optimal Soil Management and Environmental Policy
Date
01.01.2005
01.01.2005
Authors
Gilles Lafforgue, Walid Oueslati
JEL Code
Q12,Q24,Q28,Q52,H23
Q12,Q24,Q28,Q52,H23
Keywords:
Soil erosion,Pollution,Environmental policy,Optimal soil conservation,Abatement activities
Soil erosion,Pollution,Environmental policy,Optimal soil conservation,Abatement activities
Publisher
Climate Change and Sustainable Development
Climate Change and Sustainable Development
Editor
Carlo Carraro
Carlo Carraro
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.