The Economics of Soil Erosion: Theory, Methodology and Examples
The Economics of Soil Erosion: Theory, Methodology and Examples
5/15/03 1:23 PM
Special Papers
The Economics of Soil Erosion: Theory, Methodology and Examples by Edward B. Barbier
Paper based on a presentation to the Fifth Biannual Workshop on Economy and Environment in Southeast Asia (Singapore, November 28-30, 1995) Edward B. Barbier Dept of Environmental Economics and Environmental Management University of York, Heslington, York YO1 5DD, UK 1. Introduction Soil is an essential input to farming. This is especially true throughout Southeast Asia (SEA), where agricultural production is crucial to development, the livelihoods of the majority of the population depend on the primary sector, and non-labour inputs for the poorest farms are negligible. And yet agricultural land use in SEA countries often results in the degradation of natural soil fertility and reduced productivity. Soil degradation under farming also inflicts external or off-site costs, through the processes of erosion, sedimentation and leaching. The impacts of land degradation and the depletion of soil resources have profound economic implications for low income countries. Environmental damage results in loss of current income and increased risk, and particularly affects the poor. Degradation of land resources also threatens prospects for economic growth and future human welfare. In the developing countries, empirical research on the economic costs of land degradation is confined largely to analysis at the level of individual farms or watersheds. On-site impacts are most frequently studied, typically by analysis of the effect of soil loss on crop production. Limited data suggest that the impact of soil erosion on crops may be more dramatic in the tropics than under temperate conditions, due to the relative fragility of tropical soils, or more extreme climatic conditions (Lal 1981 and 1987; Stocking 1984). The off-site impacts of land degradation are often much harder to evaluate, because the
5/15/03 1:23 PM
Special Papers
The Economics of Soil Erosion: Theory, Methodology and Examples by Edward B. Barbier
Paper based on a presentation to the Fifth Biannual Workshop on Economy and Environment in Southeast Asia (Singapore, November 28-30, 1995) Edward B. Barbier Dept of Environmental Economics and Environmental Management University of York, Heslington, York YO1 5DD, UK 1. Introduction Soil is an essential input to farming. This is especially true throughout Southeast Asia (SEA), where agricultural production is crucial to development, the livelihoods of the majority of the population depend on the primary sector, and non-labour inputs for the poorest farms are negligible. And yet agricultural land use in SEA countries often results in the degradation of natural soil fertility and reduced productivity. Soil degradation under farming also inflicts external or off-site costs, through the processes of erosion, sedimentation and leaching. The impacts of land degradation and the depletion of soil resources have profound economic implications for low income countries. Environmental damage results in loss of current income and increased risk, and particularly affects the poor. Degradation of land resources also threatens prospects for economic growth and future human welfare. In the developing countries, empirical research on the economic costs of land degradation is confined largely to analysis at the level of individual farms or watersheds. On-site impacts are most frequently studied, typically by analysis of the effect of soil loss on crop production. Limited data suggest that the impact of soil erosion on crops may be more dramatic in the tropics than under temperate conditions, due to the relative fragility of tropical soils, or more extreme climatic conditions (Lal 1981 and 1987; Stocking 1984). The off-site impacts of land degradation are often much harder to evaluate, because the