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THE SUPPLY OF NON‐DEGRADED AGRICULTURAL LAND *
Author(s) -
Clarke Harry R.
Publication year - 1992
Publication title -
australian journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.683
H-Index - 49
eISSN - 1467-8489
pISSN - 0004-9395
DOI - 10.1111/j.1467-8489.1992.tb00711.x
Subject(s) - profitability index , incentive , profit (economics) , agriculture , investment (military) , soil water , natural resource economics , business , soil quality , renewable energy , environmental science , economics , environmental economics , engineering , finance , microeconomics , geography , soil science , archaeology , politics , political science , law , electrical engineering
Profitability increases because of favourable product or factor price changes provide incentives for profit‐maximising farmers, who use soils in conjunction with other cooperant inputs, to increase their investment in the preservation of soil‐quality, whenever there exist economically viable technologies for preserving soils. However, when such technologies do not exist, regardless of whether farmers utilise soils as non‐renewable or renewable resources, such profitability increases are associated with a long‐run deterioration in soil quality.