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Induced innovation and land degradation in developing country agriculture
Author(s) -
Coxhead Ian
Publication year - 1997
Publication title -
australian journal of agricultural and resource economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.683
H-Index - 49
eISSN - 1467-8489
pISSN - 1364-985X
DOI - 10.1111/1467-8489.00016
Subject(s) - externality , economics , production (economics) , context (archaeology) , induced innovation , agriculture , function (biology) , microeconomics , optimal allocation , public economics , factors of production , natural resource economics , economic system , technological change , macroeconomics , paleontology , ecology , mathematical optimization , mathematics , evolutionary biology , biology
With few exceptions, induced innovation theories give little consideration either to the role of distortions as determinants of the factor biases of innovations, or to the influence of technical progress – with or without distortions – on the sectoral structure of production. This analysis identifies demand for innovations as a function of a specific policy setting which both conditions and is conditioned by the structure of production. In this context, when some sectors contribute more than others to environmental externalities, private and social optima in the allocation of research resources may diverge. In some circumstances it may be optimal to use research budget allocations as second‐best substitutes for Pigouvian taxes.