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The Economics of Desertification, Land Degradation, and Drought

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Table 6.3—Soil loss, yields, <strong>and</strong> pr<strong>of</strong>it for l<strong>and</strong> in different slope classes, Uzbekistan<br />

Slope<br />

class<br />

Wheat Cotton<br />

Annual<br />

loss(ton/ha/yr)<br />

Yield<br />

(ton/ha)<br />

Pr<strong>of</strong>it<br />

(US$/ha)<br />

103<br />

Annual loss<br />

(ton/ha/yr)<br />

Yields<br />

(ton/ha)<br />

Pr<strong>of</strong>it<br />

(US$/ha)<br />

No erosion 0 4.50 311.87 0 2.92 297.23<br />

0-2% 1.90 4.48 310.38 0.61 2.92 296.53<br />

2-5% 8.25 4.40 303.93 3.57 2.89 292.44<br />

5-10% 25.49 4.16 284.34 11.03 2.82 279.90<br />

10-15% 58.94 3.62 241.59 25.53 2.67 251.59<br />

Source: Authors computation from simulation results.<br />

Extrapolating the Effects <strong>of</strong> <strong>L<strong>and</strong></strong> <strong>Degradation</strong> to the Whole Country<br />

Given the sensitivity to local climate <strong>and</strong> soil conditions, extrapolating the crop model results from<br />

experimental sites to domains beyond the experimental sites is extremely risky. Acknowledging all <strong>of</strong><br />

the limitations inherent in this attempt, we tried to extend the results to the rest <strong>of</strong> the country to<br />

determine whether some preliminary policy recommendation could be formulated by using this<br />

economic approach.<br />

Using IFPRI’s crop allocation s<strong>of</strong>tware Spatial Production Model (SPAM) (You <strong>and</strong> Wood<br />

2006), we identified the irrigated l<strong>and</strong> on which wheat <strong>and</strong> cotton are grown <strong>and</strong> assumed that the<br />

entire area is affected by salinity. We computed total pr<strong>of</strong>it loss induced by increasing soil salinity<br />

from a slightly saline soil (ECe = 7.5) to a moderately saline soil (ECe = 9.0). Similarly, using<br />

geographic information system (GIS) s<strong>of</strong>tware in combination with SPAM, we identified the areas in<br />

the different slope classes that had been cultivated with wheat <strong>and</strong> cotton. We then computed total<br />

pr<strong>of</strong>it loss caused by erosion. <strong>The</strong> results are shown in Figure 6.4. Salinity is a major problem, costing<br />

the country about $11.21 million annually. Globally, salinity is most severe in Central Asia<br />

(Natchergaele et al. 2010a). <strong>The</strong> economic loss <strong>of</strong> salinity for wheat <strong>and</strong> cotton alone is $13.29<br />

million, which is equivalent to the selected crops <strong>and</strong> is 0.03 percent <strong>of</strong> the gross domestic product<br />

(GDP) <strong>of</strong> $37.724 billion (IMF 2010).<br />

Figure 6.4—Total pr<strong>of</strong>it loss due to l<strong>and</strong> degradation type, Uzbekistan<br />

Total pr<strong>of</strong>it loss (US$ million)<br />

12<br />

10<br />

8<br />

6<br />

4<br />

2<br />

0<br />

11.21<br />

4.38<br />

Source: Authors calculations based on simulation results.<br />

<strong>The</strong> results <strong>of</strong> our simulation must be taken <strong>and</strong> interpreted with caution. First <strong>of</strong> all, as we<br />

mentioned, reality on the ground is more complicated than the one modeled. Second, the costs<br />

computed do not account for external costs, which, particularly in the case <strong>of</strong> erosion, can be high.<br />

2.86<br />

2.08<br />

salinity Salinity -– wheat Erosion Erosion -– wheat Erosion -– cotton Salinity - - cotton<br />

.

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