Soil resources depreciation and deforestation: Philippine case study in resource accounting
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This paper presents the results of an attempt to derive a damage function for soil loss using 20-year data projected through the application of the Erosion Productivity Index Calculator or EPIC in one soil conservation project site in the Philippines. For the asset value method, the study assumes a constant rent over the life span of the soil resource, assumed to be 30 years, which is the period in which all the topsoil is expected to be lost through erosion under condition of erosive farming pr actices. With a constant rent assumption, however, the economic measure of soil depreciation simply measures the change in the value of the asset due to the declining value of money over time. The paper also presents an estimate based on an assumption that 50% of the value of nutrients are lost through soil erosion. The study assumes that only 50% of the nutrients available in the soils are taken up by the crops. The rest are lost through various natural processes.