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Economic Impact of Soil Degradation and Assessment of Restoration Efficiency in the Agricultural Sector

Otarashvili-1.jpg
Ani Otarashvili

PhD Student at Ivane Javakhishvili Tbilisi State University

Abstract

Research Objective: The objective of this study is to examine the economic impact of soil degradation and to assess the efficiency of restoration measures in the agricultural sector. The research focuses on identifying the main forms of soil degradation—such as erosion, nutrient depletion, and salinization—and evaluating their effects on agricultural productivity, farm income, and long-term economic sustainability.

Methodological Approach: The study applies a mixed research methodology combining quantitative and qualitative analysis. Statistical data on agricultural output, land productivity, and investment in land restoration are analyzed. This allows estimating the economic losses associated with soil degradation. Comparative regional analysis and a review of policy frameworks are used to evaluate the cost-effectiveness and long-term benefits of soil restoration measures. General scientific methods, including analysis, synthesis, and comparative assessment, are employed to determine the relationship between soil quality, economic performance, and policy intervention.

Main Results and Implications: The findings demonstrate that soil degradation significantly reduces crop yields, increases production costs, and weakens the overall competitiveness of the agricultural sector. The study reveals that investment in soil restoration—such as sustainable land management practices, improved irrigation systems, and soil fertility enhancement—can generate positive economic returns in the medium and long term. Effective policy instruments, including financial incentives, support for sustainable farming technologies, and awareness programs, are essential for mitigating economic losses and ensuring sustainable agricultural development. The results provide practical implications for policymakers, agricultural producers, and researchers working in the fields of environmental economics and rural development.

Keywords: Soil degradation, agricultural productivity, economic impact, land restoration, sustainable agriculture, cost-effectiveness.

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The New Economist, N1, 2026, Vol. 21, Issue 1.

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Published Date:

04/04/2026

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