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Estimating Agricultural Pollution Abatement Costs at the Plot Level Using Experimental Data: A Maximum Entropy Approach

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  • Bond, Craig A.
  • Farzin, Y. Hossein

Abstract

This paper uses a directional output distance function to estimate a multi-output production frontier for a sample of experimental plots grown for the Sustainable Agriculture Farming Systems project at the University of California, Davis. Cross-sectional technical efficiency indices are estimated that take into account two proxies for undesirable output: number of trips across a field as a proxy for air pollution and/or soil erosion, and pints of pesticides applied to account for potential leaching and/or health risks. Shadow price estimates based on marginal rates of transformation ranged from $8-$21 for trips, while shadow prices for pints of pesticides averaged $23-$27.

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File URL: http://purl.umn.edu/8642
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Bibliographic Info

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

Volume (Year): 32 (2007)
Issue (Month): 02 (August)
Pages:

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Handle: RePEc:ags:jlaare:8642

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Web page: http://waeaonline.org/
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Related research

Keywords: directional distance function; environmental efficiency index; shadow price; Environmental Economics and Policy;

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