Policy Making in the Scope of Soil Erosion in Iran

The present study was undertaken with a view to choosing a macroeconomic policy for preventing soil erosion in Iran. In choosing the appropriate policy، this study not only calculated the environmental impacts of various policies، but also it analyzed their impacts on some important economic indices such as total real production، in a General Equilibrium framework. Results show that both the economic and environmental impacts of an Upland Food Production Tax are very favorable in comparison with a Lowland Food Production Subsidy. Finally، as a policy recommendation، it is suggested that regardless of any practical problems associated with either of the policies، the Upland Food Production Tax is potentially the appropriate policy to overcome the soil erosion of upland areas which are under cultivation by rain-fed crops.