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Technology as an Agricultural Pollution Control Policy

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  • David G. Abler
  • James S. Shortle

Abstract

In this paper we consider the market-level impacts of factor-augmenting innovations designed to reduce the use of fertilizers and pesticides, first within the context of a simple two-factor model, and then through a simulation model of the U.S. corn market. In both models, the impacts depend on the output demand elasticity and input substitution elasticities. The principal conclusion of the simulation analysis is that the potential for new techniques to reduce the use of agricultural chemicals is limited. Capital-augmenting innovations would actually raise fertilizer and pesticide usage. Land-augmenting innovations would also tend to increase pesticide usage.

Suggested Citation

  • David G. Abler & James S. Shortle, 1995. "Technology as an Agricultural Pollution Control Policy," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 77(1), pages 20-32.
    • Handle: RePEc:oup:ajagec:v:77:y:1995:i:1:p:20-32.
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    File URL: http://hdl.handle.net/10.2307/1243885
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    Cited by:

    1. Anton, W.R.Q.Wilma Rose Q. & Deltas, George & Khanna, Madhu, 2004. "Incentives for environmental self-regulation and implications for environmental performance," Journal of Environmental Economics and Management, Elsevier, vol. 48(1), pages 632-654, July.
    2. Ghimire, Narishwar & Woodward, Richard T., 2013. "Under- and over-use of pesticides: An international analysis," Ecological Economics, Elsevier, vol. 89(C), pages 73-81.
    3. Madhu Khanna & William Rose Q. Anton, 2002. "Corporate Environmental Management: Regulatory and Market-Based Incentives," Land Economics, University of Wisconsin Press, vol. 78(4), pages 539-558.
    4. Khanna, Madhu & Isik, Murat & Zilberman, David, 2002. "Cost-effectiveness of alternative green payment policies for conservation technology adoption with heterogeneous land quality," Agricultural Economics, Blackwell, vol. 27(2), pages 157-174, August.
    5. Popp, Jennie S. Hughes & Hoag, Dana L., 1998. "Sustainable Resource Management: A Methodology For Analysis," 1998 Annual meeting, August 2-5, Salt Lake City, UT 21008, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    6. Constadina Passa & Anastasios Xepapadeas, 2008. "Regulation of Farming Activities: An Evolutionary Approach," Working Papers 0811, University of Crete, Department of Economics.
    7. Zhang, Wei & Horan, Richard D. & Claassen, Roger, 2003. "The Economics Of Green Payments For Reducing Agricultural Nonpoint Source Pollution In The Corn Belt," 2003 Annual meeting, July 27-30, Montreal, Canada 21939, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    8. Abler, David G. & Shortle, James S. & Carmichael, Jeffrey J. & Horan, Richard D., 2001. "Climate Change, Agriculture, And Water Quality In The Chesapeake Bay Region," 2001 Annual meeting, August 5-8, Chicago, IL 20504, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    9. Heimlich, Ralph E. & Claassen, Roger, 1998. "Agricultural Conservation Policy At A Crossroads," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 27(1), pages 1-13, April.
    10. Roger Claassen & Richard Horan, 2001. "Uniform and Non-Uniform Second-Best Input Taxes," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 19(1), pages 1-22, May.
    11. Fare, Rolf & Grosskopf, Shawna & Weber, William L., 2006. "Shadow prices and pollution costs in U.S. agriculture," Ecological Economics, Elsevier, vol. 56(1), pages 89-103, January.
    12. Horan, Richard D. & Claassen, Roger & Cooper, Joseph C., 2000. "Environmental Risk And Agri-Environmental Policy Design," 2000 Annual meeting, July 30-August 2, Tampa, FL 21827, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

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