Economics of Dryland Management

John A. Dixon, David E. James, Paul B. Sherman

• Foreword Preface 1. The Dry land Problem Dimensions of the problem History and Background of Dryland Usage; Current Conditions in the Drylands; The Future of the Drylands References 2. Dry land Characteristics and the Degradation Process Physical and biological characteristics Climate; Surface Water and Groundwater Resources; Topography and Soils; Vegetation; Animal Populations Degradation and land use Degradation Processes; Livestock Production; Rainfed Crop production; Irrigated Agriculture; Forestry and Agroforestry; Other Land Uses Social and institutional factors Human Factors; Institutional and Political Factors References 3. The Role of Public Policy in Dryland Development and Management Policies Towards the Drylands Diversity of Dryland Problems; The Case for Public Assistance; General Policy Issues in Development Planning; Formulation of Policies, Programmes and Projects; Economics and the Policy Process Designing appropriate policies Economic Issues in Designing Remedial Action; Determining the Appropriate Level of Protection; Desirable Characteristics of Policies, Programmes and Projects The Economics of Dry land Management Social, Cultural and Institutional Factors Human Factors; Institutional Factors References 4. General Economic Principles and Techniques of Analysis Concepts of Economic Welfare Measurement of Benefits and Costs Price Distortions; Economic Externalities; Use Rights and Resource Management Systems; The Effect of Time; Breakdown of Resource Management Systems; Renewable and Non-Renewable Resources; Irreversible Damage to Resources; Risk and Uncertainty Design of an Economic Analysis Techniques of Economic Analysis References 5. Managing Drylands as Renewable Economic Resources Renewable Production Systems in Dryland Areas Sustainable Production from Dryland Ecosystems; Products of Dryland Areas; Economic Management Objectives Degradation: Causes and Corrective Actions Perspective of the Land User; Externalities and Open-Access Common Property Resource Effects; Corrective Policies and Strategies Dryland Agriculture and Forestry Rainfed Crop Management; Dryland Forestry; Appropriate Farm Technology; Soil and Water Conservation Grazing systems key Variables in Grazing Management; Handling Stochastic Conditions; Computer Simulation Modelling of Dryland Grazing Systems References 6. Economic Appraisal of Investments in Dryland Progammes and Projects Financial Analysis Social Benefit�Cost Analysis Project Costs; Physical Boundaries of Analysis; Shadow Prices; Dealing with Inflation; Secondary Impacts; Calculation of Net Social Benefits; Income Distiibution Decision Criteria Choosing a Decision Criterion Cost-Effectiveness Analysis References 7. Valuation of On-Site and Off-Site Effects Valuation of Productivity Changes On-Site Productivity Changes; Off-Site Productivity changes; Effects of Production Changes on Prices, Factor Markets and Consumer's and Producer's Surplus Valuation of Other Effects Damage to Property and Materials; Human Life and Health; Population Dislocation; Dealing with Intangibles and Non-Quantifiables Cost Analysis Techniques Preventive Expenditures; Replacement Cost; Opportunity-Cost Approach; Travel-Cost Approach References 8. Risk and Uncertainty in Dryland Development and Management Handling Risk and Uncertainty Sources of Risk and Uncertainty in Dryland Decision-Making; Definitions of Risk and Uncertainty Risk Analysis Applications of Risk Analysis; A Framework for Risk Analysis; Interpretation of Results of Risk Analysis Decision-Making Under Conditions of Uncertainty Decisions Based on Available Information; Sensitivity Analysis; Decision Analysis Techniques; Uncertainty Associated with Irreversible Damage to Resources Defensive Strategies to Cope with Risk and Uncertainty Overcoming the Effects of Risk; Investment in Information; Use of Expert Systems; Adaptive Environmental Assessment and Management; Critical Zones and Safe Minimum Standards References The Economics of Dry land Management 9. Models for Dry land Development Planning General Policy Issues in Dryland Development Planning Linear Programming Models General Properties and Applications of Linear Programming Models; Setting up a Linear Programming Model; Finding the Optimum Solution; Introducing an Environmental Externality; Limitations of the Linear Programming Approach Sectoral Planning Models General Properties of Input�Output Models; Solving an Input�Output System; Simulating the Effects of New Production; Incorporating Consumption Expenditure; Data Sources and Construction of Input�Output Models; Application of Multipliers to Dryland Development Planning Natural-Resource Accounts Approaches to NRA Global Models References 10. Implementation of Policies, Programmes and Projects Presenting Results to Decision-Makers Characteristics of a Useful Economic Analysis; Important Elements of an Economic Analysis Creation of Implementation Incentives Direct Government Expenditure; Influencing Private Behaviour; Characteristics of Efficient Incentives Selecting the Appropriate Incentives Constraints on the Use of Economic Incentives; A Checklist of Incentive Characteristics Social and Cultural Constraints to Implementation Policies on Land Tenure and Use Rights Systems and Incentives; Accommodation and Change Management of Programmes and Projects Technical Management; Financial Management; Social Management; Administrative Management References 11. Case Study: Benefit�Cost Analysis of Soil Conservation in Maphutseng, Lesotho by Jan Boj� Background The FISC Project and the Maphutseng Area The Economic Analysis Choice of Evaluation Criteria; Quantification of Costs; Quantification of Benefits; Valuation of Costs and Benefits in Economic Prices; Discounting; Time Horizon; Results; Distributional Effects; Uncertainty and Sensitivity Analysis; Summary of Sensitivity Analysis; Policy Implications of the Economic Analysis The Financial Analysis The Farmer's Viewpoint; The Long-Run Perspective; Policy Implications of the Financial Analysis Acknowledgements List of Persons Contacted in Lesotho Annex: Cost Calculations References Index