In this paper the determination of an optimal Pigouvian tax for a competitive firm when a negative production externality is present concurrent with the development of land for production purposes is analyzed within a dynamic framework. Conditions are established for a convex social net return...

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...