Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.
Topics of Discussion • Agriculture and the environment • Economics of the environment • Economics of resources in agriculture • Soil quality and quantity • Economics of soil conservation • Government policies for agriculture, natural resourcs, and the environment
Agriculture and the Environment • Water pollution • Air pollution • Global warming • Other environmental impacts Pages 212-216
Water pollutants range from nutrients to PCBs which are known to cause cancer. Page 213
The greenhouse effect Page 213
Efficient level of abatement Page 217
Efficient Property Rights • Enforceability: security of individual rights • Transferability: can be transferred from one individual to another • Exclusivity: all associated benefits and costs are received by only the owner of the asset Pages 217-218
Cost Effective Policies • Command-and-Control policies • Taxes and subsidies • Transferable rights Pages 217-218
Taxes and subsidies inducements to abate pollution. Page 222
Economics of Soil Use • Soil quality and quantity • Economics of conservation • Characteristics of soil • Present value of soil resources • The Dust Bowl Pages 224-227
Water as an Asset • Surface water • Profitability of water use • Prior appropriation rights • Groundwater • Conditions for efficient use • Rate of recharge for aquifers • Transferable rights Pages 227-229
Marginal revenue and profit from water use for two identical farmers. Page 228
Government Policies • Soil erosion policies and the Conservation Reserve Program • Purpose of the CRP • Direct and indirect effects • Other federal incentive programs • Environmental Quality Incentives Program • Wetlands Reserve Program • Environmental regulations • Endangered Species Act Pages 230-232
Summary • Economists play a role in designing policies at affect the environment and natural resources. • Incentives matter when designing policies at achieve desired objectives. • Agriculture impacts the environment through water pollution, air pollution, global warming among other ways. • Water and soil are assets that have value and net benefits associated with their use. • Government plays an active role in guiding and regulating the use of resources and impact on environment.
Chapter 11 discusses other forms of governmental intervention, including price and income supports…