Diversification in Agricultural Production: A Dynamic Model of Optimal Cropping to Manage Soil Erosion

A dynamic economic model of soil erosion is presented where the intensity of use of inputs and the choice of crops allow the farmer to control soil losses. The results show that it is predominately optimal to approach the singular-path/steady-state equilibrium most rapidly by the cultivation of a single crop. At the steady state, however, a mix of crops is cultivated. The promotion of erosion control practices on only high-erosion crops may reduce the long-run soil stock, whereas a tax on the land cultivated with a particular crop is shown to be effective in increasing the long-run soil stock. Copyright 1997, Oxford University Press.