TY - JOUR AU - Hansen,Zeynep K. AU - Libecap,Gary D. TI - Small Farms, Externalities, and the Dust Bowl of the 1930's JF - National Bureau of Economic Research Working Paper Series VL - No. 10055 PY - 2003 Y2 - November 2003 UR - http://www.nber.org/papers/w10055 L1 - http://www.nber.org/papers/w10055.pdf N1 - Author contact info: Zeynep K. Hansen College of Business and Economics Department of Economics Boise State University 1910 University Drive Boise, ID 83725-1620 Tel: 208/426-3314 Fax: 208/426-2071 E-Mail: zeynephansen@boisestate.edu Gary D. Libecap Bren School of Environmental Science and Management and Economics Department University of California, Santa Barbara Bren Hall 4412 Santa Barbara, CA 93106-5131 Tel: 805-893-8611 Fax: 805-893-7612 E-Mail: glibecap@bren.ucsb.edu AB - 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. ER -