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Soil Erosion, Intertemporal Profit, and the Soil Conservation Decision

Published online by Cambridge University Press:  05 September 2016

Angelos Pagoulatos ,
David L. Debertin  and
Fachurrozi Sjarkowi
Angelos Pagoulatos
Affiliation:
University of Kentucky
David L. Debertin
Affiliation:
University of Kentucky
Fachurrozi Sjarkowi
Affiliation:
University of Kentucky
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Abstract

This study developed an intertemporal profit function to determine optimal conservation adoption strategies under alternative scenarios with respect to crop prices, relative yields, discount rates, and other assumptions. Special emphasis was placed on determining from the analysis when the switchover from conventional to soil-conserving practices should take place. Technological change was incorporated by allowing crop yields to vary over time. Our analysis thus provides a new, more precise measurement of the cumulative net benefit differential. The optimal period for switchover from conventional to soil-conserving practices was found to vary depending on the assumptions made about corn prices and discount rates. Empirical results were based on an erosion damage function (EDF) for Western Kentucky corn production.

Keywords

soil conservationtechnical changebenefit/cost analysisintertemporal decisionmakingtechnologyadoptionno-till
Type
Submitted Articles
Information
Journal of Agricultural and Applied Economics , Volume 21 , Issue 2 , December 1989 , pp. 55 - 62
Copyright
Copyright © Southern Agricultural Economics Association 1989

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