Advanced Search
MyIDEAS: Login

Aggregate Technical Efficiency and Water Use in U.S. Agriculture

Contents:

Author Info

  • Zaeske, Andrew

    ()
    (CERE, Centre for Environmental and Resource Economics)

Registered author(s):

    Abstract

    In the United States freshwater withdrawals for agriculture account for 80% of all out of stream water withdrawals from 1985 to 2005. To assess what drives water use in agriculture, we use the two error stochastic frontier analysis model of Battese and Coelli (1995) to estimate a translog production frontier for agriculture at the state level. The inclusion of non-negative technical inefficiency eff ects allows us to account for additional characteristics in our assessment of production inefficiency. The average marginal value of irrigation is $380, while we fi nd that on average $1 of intermediate inputs provides $0.96 of final output. These results are driven by a small subset of states with large negative values, indicating persistent misallocation of resources. The inefficiency eff ects regression finds that government subsidies increase in value of output of 0:083 per real dollar of subsidies and that that shifts from larger acreage farms to lower acreage ones will generally be efficiency increasing. This analysis highlights di fferences in water use and how they can have major implications for farm policy as a whole. Of particular note is the measured positive correlation between having a negative marginal product of intermediates and having a positive marginal product of irrigation, which suggests that shifts in inputs from intermediates to irrigation are a ripe target for efficiency gains in many states.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://www-sekon.slu.se/~gbost/CERE_WP2012-11.pdf
    Download Restriction: no

    Bibliographic Info

    Paper provided by CERE - the Center for Environmental and Resource Economics in its series CERE Working Papers with number 2012:11.

    as in new window
    Length: 26 pages
    Date of creation: 25 May 2012
    Date of revision:
    Handle: RePEc:hhs:slucer:2012_011

    Contact details of provider:
    Web page: http://www.cere.se

    Related research

    Keywords: agriculture; water use;

    Find related papers by JEL classification:

    This paper has been announced in the following NEP Reports:

    References

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
    as in new window
    1. Tim Coelli & Sanzidur Rahman & Colin Thirtle, 2003. "A stochastic frontier approach to total factor productivity measurement in Bangladesh crop agriculture, 1961-92," Journal of International Development, John Wiley & Sons, Ltd., vol. 15(3), pages 321-333.
    2. Aigner, Dennis & Lovell, C. A. Knox & Schmidt, Peter, 1977. "Formulation and estimation of stochastic frontier production function models," Journal of Econometrics, Elsevier, vol. 6(1), pages 21-37, July.
    3. Koop, Gary & Osiewalski, Jacek & Steel, Mark F J, 1999. " The Components of Output Growth: A Stochastic Frontier Analysis," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 61(4), pages 455-87, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:hhs:slucer:2012_011. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mona Bonta Bergman).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.