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Storage Technology And The Environment

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  • Lichtenberg, Erik
  • Zilberman, David

Abstract

A dynamic framework is presented for analyzing regulations affecting the use of spoilage-reducing inputs with potential negative environmental effects, such as pesticides, growth regulators, chemical preservatives, and irradiation. Such regulations change intertemporal consumption patterns as well as total output. Consumers may benefit from restrictions on storage technology, giving them a reason to support regulation even when it may not be warranted to correct environmental externalities. Static analyses do not take into account changes in intertemporal consumption, and thus may give misleading depictions of the effects of imposing new regulations. Implications of the framework for development and trade policy are discussed, as are extensions to cases of uncertainty and multiple time periods.

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File URL: http://purl.umn.edu/31077
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Bibliographic Info

Article provided by Western Agricultural Economics Association in its journal Journal of Agricultural and Resource Economics.

Volume (Year): 27 (2002)
Issue (Month): 01 (July)
Pages:

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Handle: RePEc:ags:jlaare:31077

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Web page: http://waeaonline.org/
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Keywords: Environmental Economics and Policy;

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  1. Wright, Brian D & Williams, Jeffrey C, 1982. "The Economic Role of Commodity Storage," Economic Journal, Royal Economic Society, vol. 92(367), pages 596-614, September.
  2. Wright, Brian D & Williams, Jeffrey C, 1984. "The Welfare Effects of the Introduction of Storage," The Quarterly Journal of Economics, MIT Press, vol. 99(1), pages 169-92, February.
  3. Williams,Jeffrey C. & Wright,Brian D., 2005. "Storage and Commodity Markets," Cambridge Books, Cambridge University Press, number 9780521023399.
  4. Foster, William E. & Babcock, Bruce A., 1991. "Producer Welfare Consequences of Regulating Chemical Residues on Agricultural Crops: Maleic Hydrazide and Flue Cured Tobacco," Staff General Research Papers 10590, Iowa State University, Department of Economics.
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