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Direct And Indirect Shadow Price And Cost Estimates Of Nitrogen Pollution Abatement

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  • Shaik, Saleem
  • Helmers, Glenn A.
  • Langemeier, Michael R.

Abstract

The implications of treating environmental pollution as an undesirable output (weak disposability) as well as a normal input (strong disposability) on the direct and indirect shadow price and cost estimates of nitrogen pollution abatement is analyzed using Nebraska agriculture sector data. The shadow price of nitrogen pollution abatement treated as an undesirable output represents the reduced revenue from reducing nitrogen pollution. In contrast, the shadow price of nitrogen pollution abatement treated as an input reflects the increased cost of reducing nitrogen pollution. For the 1936-97 period, the estimated shadow price and cost of nitrogen pollution abatement for Nebraska ranges from $0.91 to $2.21 per pound and from $300 to $729 million respectively.

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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): 02 (December)
Pages:

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Handle: RePEc:ags:jlaare:31121

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

References

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  1. Robert D. Weaver, 1998. "Measuring Productivity of Environmentally Interactive Technologies: The Case of Agriculture and the Environment," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(3), pages 595-599.
  2. Daniel W. BROMLEY, 1996. "The Environmental Implications Of Agriculture," Staff Papers 401, University of Wisconsin Madison, AAE.
  3. V. Kerry Smith, 1998. "Should Pollution Reductions Count as Productivity Gains for Agriculture?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(3), pages 591-594.
  4. Russell W. Pittman, 1981. "Issue in Pollution Control: Interplant Cost Differences and Economies of Scale," Land Economics, University of Wisconsin Press, vol. 57(1), pages 1-17.
  5. Shaik, Saleem & Helmers, Glenn A., 1999. "Shadow Price Of Environmental Bads: Weak Vs. Strong Disposability," 1999 Annual meeting, August 8-11, Nashville, TN 21615, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  6. JAY S. COGGINS & John R. Swinton, 1994. "The Price of Pollution: A Dual Approach to Valuing SO2 Allowances," Wisconsin-Madison Agricultural and Applied Economics Staff Papers 378, Wisconsin-Madison Agricultural and Applied Economics Department.
  7. Shaik, Saleem & Perrin, Richard K., 1999. "The Role Of Non-Parametric Approach In Adjusting Productivity Measures For Environmental Impacts," 1999 Annual meeting, August 8-11, Nashville, TN 21716, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  8. Frank M. Gollop & Gregory P. Swinand, 1998. "From Total Factor to Total Resource Productivity: An Application to Agriculture," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(3), pages 577-583.
  9. Dale W. Jorgenson & Peter J. Wilcoxen, 1990. "Environmental Regulation and U.S. Economic Growth," RAND Journal of Economics, The RAND Corporation, vol. 21(2), pages 314-340, Summer.
  10. Daniel W. Bromley, 1996. "The Environmental Implications of Agriculture," Wisconsin-Madison Agricultural and Applied Economics Staff Papers 401, Wisconsin-Madison Agricultural and Applied Economics Department.
  11. Rolf F�re & Shawna Grosskopf, 1998. "Shadow Pricing of Good and Bad Commodities," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(3), pages 584-590.
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Citations

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Cited by:
  1. Rezek, Jon P. & Perrin, Richard K., 2004. "Environmentally Adjusted Agricultural Productivity in the Great Plains," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 29(02), August.
  2. David Meintrup & Chang Woon Nam, 2009. "Shadow market area for air pollutants," Environment and Planning B: Planning and Design, Pion Ltd, London, vol. 36(4), pages 664-681, July.
  3. Aghajanzadeh-Darzi, Parisa & Jayet, Pierre-Alain & Domingues, M.J.P, 2012. "Improvement of a bio-economic mathematical programming model in the case of on-farm source inputs and outputs," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126768, International Association of Agricultural Economists.
  4. Tim Coelli & Ludwig Lauwers & Guido Huylenbroeck, 2007. "Environmental efficiency measurement and the materials balance condition," Journal of Productivity Analysis, Springer, vol. 28(1), pages 3-12, October.
  5. Welch, Eric & Barnum, Darold, 2009. "Joint environmental and cost efficiency analysis of electricity generation," Ecological Economics, Elsevier, vol. 68(8-9), pages 2336-2343, June.
  6. Charles, Vincent & Kumar, Mukesh & Irene Kavitha, S., 2012. "Measuring the efficiency of assembled printed circuit boards with undesirable outputs using data envelopment analysis," International Journal of Production Economics, Elsevier, vol. 136(1), pages 194-206.
  7. Lauwers, Ludwig, 2009. "Justifying the incorporation of the materials balance principle into frontier-based eco-efficiency models," Ecological Economics, Elsevier, vol. 68(6), pages 1605-1614, April.

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