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

Author

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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.

Suggested Citation

  • Bond, Craig A. & Farzin, Y. Hossein, 2007. "Estimating Agricultural Pollution Abatement Costs at the Plot Level Using Experimental Data: A Maximum Entropy Approach," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 32(2), pages 1-18, August.
    • Handle: RePEc:ags:jlaare:8642
    DOI: 10.22004/ag.econ.8642
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    Cited by:

    1. Robertson R. B. Khataza & Atakelty Hailu & Marit E. Kragt & Graeme J. Doole, 2017. "Estimating shadow price for symbiotic nitrogen and technical efficiency for legume-based conservation agriculture in Malawi," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 61(3), pages 462-480, July.
    2. Khataza, Robertson R.B. & Hailu, Atakelty & Kragt, Marit E. & Doole, Graeme, 2017. "The opportunity costs of enhancing legume‐based sustainable agricultural intensification practices in Malawi," 2017 Conference (61st), February 7-10, 2017, Brisbane, Australia 258672, Australian Agricultural and Resource Economics Society.

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    Keywords

    Environmental Economics and Policy;

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