Abstract
Soil is an essential natural resource for humans and an important part of the environment. However, soil is often used and managed inappropriately, causing its erosion and degradation, with concomitantly negative social, political and economic impacts. This study aimed to discuss sustainable development; and losses and problems caused by soil erosion, and to suggest a model for assessing erosion costs. The relevance of economic models for costing soil erosion is stressed. Based on an economic theory, it presents a procedure for assessing economic costs of soil erosion, centered on the on-site and off-site costs that are generated. The physical processes of soil erosion are described and their economic effects reviewed, drawing on theoretical and empirical sources. Limited data and information is available on the economic losses resulting from erosion, which hampers assessment and valuation.
Highlights
One of the most important natural resources for humans is soil
Based on an economic theory, it presents a procedure for assessing economic costs of soil erosion, centered on the on-site and off-site costs that are generated
Soil erosion costs can be divided into on-site costs, consisting of losses incurred on the farmland, and off-site costs occurring away from the farmland and affecting everyone
Summary
One of the most important natural resources for humans is soil. It is a limited, strategic resource of huge social, economic and environmental significance. Social marginal costs are borne by all citizens, together with the adverse effect on social well-being From this perspective, it is clearly necessary to conceptualize the economic value of the natural resources in the environment and develop techniques to estimate losses incurred by inappropriate use of the soil. Agricultural activities cause various impacts on the environment, including soil erosion and degradation In this context, concepts from the field of economics have been used to develop models for calculating environmental costs (Figure 1), as well as the benefits of conserving natural resources such as the soil, in pursuit of an alternative path towards development that could be considered sustainable. The process of agricultural soil erosion depresses demand, since each unit produced results in off-site costs This happens because the price of the product is increased by the amounts spent on repairing the damage that soil erosion causes on the farming.
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