Working Paper: NBER ID: w10055
Authors: Zeynep K. Hansen; Gary D. Libecap
Abstract: We provide a new and more complete analysis of the origins of the Dust Bowl of the 1930s, one of the most severe environmental crises in North America in the 20th Century. Severe drought and wind erosion hit the Great Plains in 1930 and lasted through 1940. There were similar droughts in the 1950s and 1970s, but no comparable level of wind erosion. We explain why. The prevalence of small farms in the 1930s limited private solutions for controlling the downwind externalities associated with wind erosion. Drifting sand from unprotected fields damaged neighboring farms. Small farmers cultivated more of their land and were less likely to invest in erosion control than were larger farmers. Soil Conservation Districts, established by government after 1937, helped coordinate erosion control. This unitized' solution for collective action is similar to that used in other natural resource/environmental settings.
Keywords: No keywords provided
JEL Codes: Q24; N52; O13; K11
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| small farms (Q12) | intensive cultivation (Q15) |
| small farms (Q12) | less frequent use of erosion control techniques (Q15) |
| intensive cultivation + less frequent use of erosion control techniques (Q15) | greater soil erosion (Q15) |
| externalities from small farms (Q12) | downwind damages (Q54) |
| larger farms (Q12) | greater incentives to invest in erosion control (Q15) |
| presence of many small farms (Q12) | reduced overall fallow share of cropland (Q15) |
| reduced overall fallow share of cropland (Q15) | lower collective investment in erosion control measures (Q15) |
| higher prevalence of small farms (Q12) | more severe wind erosion (Q54) |
| lack of coordinated action among farmers (Q13) | hindered effective soil conservation efforts (Q24) |
| counties with larger average farm sizes (Q15) | higher fallow shares (Q15) |
| higher fallow shares (Q15) | less severe wind erosion (Q54) |
| collective action problem posed by numerous small farms (P32) | severity of the Dust Bowl (Q54) |
| soil conservation districts (Q24) | coordinate erosion control efforts (Q24) |