Pasture taxes and agricultural intensification in southern Mali

Timothy Dalton and William Masters

Agricultural Economics, 1998, vol. 19, issue 1-2, 27-32

Abstract: This study integrates biophysical simulation data with a farm household model of intertemporal optimization, to investigate changing crop‐livestock management practices in the Sudano‐Guinean zone of Mali. Over a 15‐yr time horizon we find that free grazing on the commons remains more attractive to the representative household than adopting more labor‐and capital‐intensive confinement systems, but that a relatively low level of pasture tax (around US$3 per livestock unit per year) would be sufficient to induce intensification. Because confinement raises output, the net cost of the tax to the household is only about US$1 per unit per year. Imposing pasture taxes to induce intensification could raise community welfare, if the value of commons resources liberated by reduced grazing pressure exceeds that level.

Date: 1998
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