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Gilles Lafforgue and Walid Oueslati
''Optimal soil management and environmental policy''
( 2007, Vol. 17 No.3 )
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. Inputs use induces a pollution which is accentuated by the soil fragility. We show, at the steady state, that environmental tax induces a more conservative farmer behavior for soil, but in some cases it can exacerbate pollution. These effects can be moderated when farmer introduces abatement activity.
Keywords: environmental policy
JEL: Q0 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics: General
H4 - Publicly Provided Goods: General
Manuscript Received : Nov 27 2006 Manuscript Accepted : Jan 22 2007

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