Start Submission Become a Reviewer

Reading: Impact of Potato Trade Liberalisation on Soil Erosion: A Multi Period Market Simulation Model

Download

A- A+
dyslexia friendly

Articles

Impact of Potato Trade Liberalisation on Soil Erosion: A Multi Period Market Simulation Model

Authors:

J Weerahewa ,

Faculty of Agriculture, University of Peradeniya, LK
X close

HM Gunatilake,

Faculty of Agriculture, University of Peradeniya, LK
X close

S Thrikawala,

Faculty of Agriculture, University of Peradeniya, LK
X close

HB Kotagama

International Water Management Institute., LK
X close

Abstract

This study quantifies the welfare changes in potato trade liberalisation in Sri Lanka incorporating long-term social cost of soil erosion into a multiperiod market simulation model. Seven alternative crops were considered for studying long-term land use changes induced by potato trade liberalisation. On-site cost of soil erosion was incorporated in the model through a dynamic soil depth crop yield function and cumulative off-site costs were deducted in calculating net welfare changes associated with land use changes induced by potato trade liberalisation. The results show that gain in consumer surplus is much higher than loss in producer surplus, government revenue and environmental cost. Thus, findings show that trade liberalisation is welfare improving. With regard to the impact of trade liberalisation on environment, the findings are however, non-conclusive. Depending on the empirical setting, trade liberalisation may induce environmentally friendly or unfriendly land use changes. Some environmental policies may be necessary in conjunction with trade liberalisation as it may not necessarily induce environmentally friendly land use changes.

DOI: http://dx.doi.org/10.4038/sjae.v3i0.3493

SJAE 2000; 3(1): 123-141

DOI: http://doi.org/10.4038/sjae.v3i0.3493
How to Cite: Weerahewa, J. et al., (2011). Impact of Potato Trade Liberalisation on Soil Erosion: A Multi Period Market Simulation Model. Sri Lankan Journal of Agricultural Economics. 3, pp.123–141. DOI: http://doi.org/10.4038/sjae.v3i0.3493
411
Views
317
Downloads
Published on 26 Aug 2011.
Peer Reviewed

Downloads

  • PDF (EN)

    comments powered by Disqus