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Effective Costs And Chemical Use In U.S. Agricultural Production: Benefits And Costs Of Using The Environment As A "Free" Input

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Author Info
Paul, Catherine J. Morrison
Ball, V. Eldon
Felthoven, Ronald G.
Nehring, Richard

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Abstract

This study uses a cost-function-based model of production processes in U.S. agriculture to represent producers' input and output decisions, and the implied costs of reductions in risk associated with leaching and runoff from agricultural chemical use. The model facilitates evaluation of the statistical significance of measured shadow values for "bad" outputs, and their input- and output-specific components, with a focus on the impacts on pesticide demand and its quality and quantity aspects. The shadow values of risk reduction are statistically significant, and imply increased demand for effective pesticides over time that stem largely from improvements in quality due to embodied technology, and that vary substantively by region.

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File URL: http://purl.umn.edu/11986
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Publisher Info
Paper provided by University of California, Davis, Department of Agricultural and Resource Economics in its series Working Papers with number 11986.

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Date of creation: 2000
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Handle: RePEc:ags:ucdavw:11986

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Related research
Keywords: Environmental Economics and Policy; Farm Management;

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  1. Lilyan E. Fulginiti & Richard K. Perrin, 1992. "Prices and Productivity in Agriculture," Center for Agricultural and Rural Development (CARD) Publications 93-gatt2, Center for Agricultural and Rural Development (CARD) at Iowa State University. [Downloadable!]
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