Price and subsidy policy on soil conservation: application to smallholder tea growers

Ananda, Jayanath and Herath, Gamini 2001, Price and subsidy policy on soil conservation: application to smallholder tea growers, Economic analysis and policy, vol. 31, no. 2, pp. 99-110.

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Title Price and subsidy policy on soil conservation: application to smallholder tea growers
Author(s) Ananda, Jayanath
Herath, Gamini
Journal name Economic analysis and policy
Volume number 31
Issue number 2
Start page 99
End page 110
Publisher University of Queensland
Place of publication Brisbane,Qld.
Publication date 2001-09
ISSN 0313-5926
Keyword(s) Conservation
Summary The role of commodity prices and subsidies on the adoption of soil conservation has been widely debated yet is poorly understood. One reason for this is the complex nature of the relationship between soil loss and yield damage. This paper examines the effects of price and subsidy policy on adoption of soil conservation measures in tea lands in Sri Lanka. The soil conservation technologies considered are lateral drains, stone terraces and Sloping Agricultural Land Technique (SALT). The study uses a non-linear yield damage function to estimate tea yield loss due to soil erosion. The yield function is then used in conjunction with a simple analytical model to examine the effects of changes in price and subsidies
on the incentives to adopt various soil conservation technologies. When there is a yield increment with soil conservation, increases in both prices and subsidies are found to make soil conservation economically attractive.
Language eng
Field of Research 140205 Environment and Resource Economics
Socio Economic Objective 970114 Expanding Knowledge in Economics
HERDC Research category C1.1 Refereed article in a scholarly journal
Copyright notice ©2001, University of Queensland
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Document type: Journal Article
Collections: Faculty of Business and Law
School of Accounting, Economics and Finance
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