Measurement of the scarcity of soil in agriculture

The paper defines the concept of land degradation and costs and effects of soil erosion. Through the concept of optimal levels of soil erosion, a conceptual model of the social costs of soil degradation is elaborated. The discussion focuses on the measurement aspects of the economic scarcity of soil in the agriculture sector. Reliable estimates of the true impacts of soil degradation can only be made if data on marginal damage costs and marginal conservation costs are available. The different scarcity indicators are evaluated and competitive land rental prices are considered as appropriate in indicating soil scarcity in agriculture.