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A Cost Function Analysis to Estimate the Effects of Fertilizer Policy on the Supply of Wheat and Corn

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  • Roberto J. Garcia
  • Alan Randall

Abstract

Cost functions by crop (U.S. and French wheat and corn, and English wheat) are estimated and marginal costs derived. Fertilizer input demand and output supply elasticities, estimated via marginal cost, are computed capturing the effect of fertilizer-reducing policies (a tax and a quota). Supply and fertilizer demand effects are compared within and across countries. The results generally support the hypothesis that fertilizer-reducing policies have a greater effect on crop supplies that use fertilizer more intensively, and that fertilizer policy multilaterally imposed will give U.S. producers a relative competitive advantage vis-a-vis French and English producers.

Suggested Citation

  • Roberto J. Garcia & Alan Randall, 1994. "A Cost Function Analysis to Estimate the Effects of Fertilizer Policy on the Supply of Wheat and Corn," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 16(2), pages 215-230.
    • Handle: RePEc:oup:revage:v:16:y:1994:i:2:p:215-230.
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    File URL: http://hdl.handle.net/10.2307/1349464
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    Citations

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    Cited by:

    1. Fabrice Levert & Hervé Guyomard & Alexandre Gohin, 2003. "Impacts économiques d’une réduction des utilisations agricoles des engrais minéraux en France : une analyse en équilibre général," Économie et Prévision, Programme National Persée, vol. 157(1), pages 13-30.
    2. Rana, Jaber & Kamruzzaman, M. & Hosain Oliver, Moinul & Akhi, Kaynath, 2021. "Financial and factors demand analysis of solar powered irrigation system in Boro rice production: A case study in Meherpur district of Bangladesh," Renewable Energy, Elsevier, vol. 167(C), pages 433-439.
    3. C.S. Kim & C. Sandretto & N.D. Uri, 1997. "The Implications of the Adoption of Alternative Production Practices on the Estimation of Input Productivity in Agriculture," Energy & Environment, , vol. 8(2), pages 133-150, June.
    4. Austin, Darran & Cao, Kay & Rys, Gerald, 2006. "Modelling Nitrogen Fertiliser Demand in New Zealand," 2006 Conference, August 24-25, 2006, Nelson, New Zealand 31970, New Zealand Agricultural and Resource Economics Society.
    5. Hansen, Lars Gårn, 2004. "Nitrogen Fertilizer Demand from Danish Crop Farms - Regulatory Implications of Farm Heterogeneity," MPRA Paper 48366, University Library of Munich, Germany.
    6. Noel D. Uri, 1997. "The Use of Fertilizer and its Environmental Consequences," Energy & Environment, , vol. 8(3), pages 191-205, September.
    7. Hmaed Najafi Alamdarlo & Fariba Riyahi & Mohamad Hasan Vakilpoor, 2019. "Wheat Self-Sufficiency, Water Restriction and Virtual Water Trade in Iran," Networks and Spatial Economics, Springer, vol. 19(2), pages 503-520, June.

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