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Adjustments Of Agricultural Productivity For Nitrogen Effluent In The Great Plains

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  • Rezek, Jon P.
  • Perrin, Richard K.

Abstract

Traditional measures of agricultural productivity only incorporate those inputs and outputs that are recorded in market transactions. However, such measures do not account for externalities such as environmental damage. This study uses an output distance function framework to estimate a Malmqvist productivity index for a panel of Great Plains states then adjusts this index by incorporating nitrogen effluent into the analysis. We estimate that long-run environmentally-adjusted productivity growth was approximately 13 percent below the unadjusted rate during the sample period. However the environmentally sensitive productivity rate actually exceeded the unadjusted rate in recent years, reflecting reductions in the discharge of agricultural nitrogen into the environment.

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Bibliographic Info

Paper provided by American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) in its series 2001 Annual meeting, August 5-8, Chicago, IL with number 20524.

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Date of creation: 2001
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Handle: RePEc:ags:aaea01:20524

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Keywords: Productivity Analysis;

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  1. Coggins, Jay S. & Swinton, John R., 1996. "The Price of Pollution: A Dual Approach to Valuing SO2Allowances," Journal of Environmental Economics and Management, Elsevier, vol. 30(1), pages 58-72, January.
  2. Hailu, Atakelty & Veeman, Terrence S., 2000. "Environmentally Sensitive Productivity Analysis of the Canadian Pulp and Paper Industry, 1959-1994: An Input Distance Function Approach," Journal of Environmental Economics and Management, Elsevier, vol. 40(3), pages 251-274, November.
  3. John R. Swinton, 1998. "At What Cost do We Reduce Pollution? Shadow Prices of SO2 Emissions," The Energy Journal, International Association for Energy Economics, vol. 0(Number 4), pages 63-83.
  4. Diewert, Erwin, 2007. "Index Numbers," Economics working papers diewert-07-01-03-08-17-23, Vancouver School of Economics, revised 31 Jan 2007.
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