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'Direct and Indirect Shadow Price Estimates of Nitrate Pollution Treated as an Undesirable Output and Input', Journal of Agricultural and Resource Economics Vol. 27, No. 2 (December 2002) pp: 420-432

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Author Info

  • Saleem Shaik

    (Mississippi State University)

  • Glenn A Helmers

    (University of Nebraska)

  • Michael Langemeier

    (Kansas State University)

Abstract

The implication of treating environmental pollution as an undesirable output (weak disposability) as well as a normal input (strong disposability) on the direct and indirect shadow price and cost estimates of nitrogen pollution abatement is analyzed using Nebraska agriculture sector data. The shadow price of nitrogen pollution abatement treated as an undesirable output represents the reduced revenue from reducing nitrogen pollution. In contrast, the shadow price of nitrogen pollution abatement treated as an input reflects the increased cost of reducing nitrogen pollution. For the 1936-97 period, the estimated shadow price and cost of nitrogen pollution abatement for Nebraska ranges from $0.91 to $2.21 per pound and from $300 to $729 million, respectively.

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Bibliographic Info

Paper provided by EconWPA in its series Development and Comp Systems with number 0512023.

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Length: 13 pages
Date of creation: 25 Dec 2005
Date of revision:
Handle: RePEc:wpa:wuwpdc:0512023

Note: Type of Document - pdf; pages: 13.
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Web page: http://128.118.178.162

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Keywords: Direct and indirect approaches; disposability; nitrogen pollution; nonparametric programming; shadow price;

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  1. Klaus Conrad & Catherine J. Morrison, 1985. "The Impact of Pollution Abatement Investment on Productivity Change: AnEmpirical Comparison of the U.S., Germany, and Canada," NBER Working Papers 1763, National Bureau of Economic Research, Inc.
  2. Gollop, Frank M & Roberts, Mark J, 1983. "Environmental Regulations and Productivity Growth: The Case of Fossil-Fueled Electric Power Generation," Journal of Political Economy, University of Chicago Press, vol. 91(4), pages 654-74, August.
  3. Shaik, Saleem & Helmers, Glenn A., 1999. "Shadow Price Of Environmental Bads: Weak Vs. Strong Disposability," 1999 Annual meeting, August 8-11, Nashville, TN 21615, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
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  8. Fare, Rolf, et al, 1993. "Derivation of Shadow Prices for Undesirable Outputs: A Distance Function Approach," The Review of Economics and Statistics, MIT Press, vol. 75(2), pages 374-80, May.
  9. Daniel W. Bromley, 1996. "The Environmental Implications of Agriculture," Wisconsin-Madison Agricultural and Applied Economics Staff Papers 401, Wisconsin-Madison Agricultural and Applied Economics Department.
  10. Rolf F�re & Shawna Grosskopf, 1998. "Shadow Pricing of Good and Bad Commodities," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(3), pages 584-590.
  11. Hrubovcak, James & LeBlanc, Michael & Eakin, B. Kelly, 1995. "Accounting for the Environment in Agriculture," Technical Bulletins 156782, United States Department of Agriculture, Economic Research Service.
  12. Yaisawarng, Suthathip & Klein, J Douglass, 1994. "The Effects of Sulfur Dioxide Controls on Productivity Change in the U.S. Electric Power Industry," The Review of Economics and Statistics, MIT Press, vol. 76(3), pages 447-60, August.
  13. Daniel W. BROMLEY, 1996. "The Environmental Implications Of Agriculture," Staff Papers 401, University of Wisconsin Madison, AAE.
  14. Robert D. Weaver, 1998. "Measuring Productivity of Environmentally Interactive Technologies: The Case of Agriculture and the Environment," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(3), pages 595-599.
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