RT Journal Article
SR Electronic
T1 Agricultural Land Retirement and Slippage: Lessons from an Australian Case Study
JF Land Economics
JO Land Econ
FD University of Wisconsin Press
SP 206
OP 226
DO 10.3368/le.81.2.206
VO 81
IS 2
A1 Fraser, Iain
A1 Waschik, Robert
YR 2005
UL http://le.uwpress.org/content/81/2/206.abstract
AB This paper uses a Computable General Equilibrium (CGE) model to examine the economic implications of agricultural land retirement from wool production for conservation in Australia. Employing an innovative specific-factors characterization of production to generate short-run and long-run results, we show that the potential welfare gains from land retirement can be significant. However, in several scenarios examined we find that slippage in agricultural production is significant, resulting in reduced welfare. Our slippage results provide insights into the relationship between the potential causes of slippage and describe how a land retirement policy can be designed to minimize this effect. (JEL C68, Q24)