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Combining Economic And Biological Data To Estimate The Impact Of Pollution On Crop Production

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  • Dixon, Bruce L.
  • Garcia, Philip
  • Adams, Richard M.
  • Mjelde, James W.
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    Abstract

    Duality methods utilizing a profit function framework are employed to estimate the output elasticity of ambient ozone levels on cash grain farms in Illinois. While duality methods have been recommended as a cure to many of the statistical problems of direct estimation of production functions, multicollinearity may still be a problem. A method for utilizing stochastic information on parameters of a seemingly unrelated system of equations, which is implied by profit function estimation, is developed and applied to measuring the impact of ozone. Such an approach may be necessary in measuring other environmental effects because of a lack of regressor variability.

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    File URL: http://purl.umn.edu/32140
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    Bibliographic Info

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

    Volume (Year): 09 (1984)
    Issue (Month): 02 (December)
    Pages:

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    Handle: RePEc:ags:wjagec:32140

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

    Keywords: Crop Production/Industries; Environmental Economics and Policy;

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    1. Judge, G. G. & Yancey, T. A. & Bock, M. E., 1973. "Properties of estimators after preliminary tests of significance when stochastic restrictions are used in regression," Journal of Econometrics, Elsevier, vol. 1(1), pages 29-47, March.
    2. Adams, Richard M. & McCarl, Bruce A., 1985. "Assessing the benefits of alternative ozone standards on agriculture: The role of response information," Journal of Environmental Economics and Management, Elsevier, vol. 12(3), pages 264-276, September.
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