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Economic And Water Quality Impacts Of Reducing Nitrogen And Pesticide Use In Agriculture

  • Randhir, Timothy O.
  • Lee, John G.
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    A multiyear regional risk programming model was used in evaluating the impacts of different environmental policies on cropping systems, input use, nonpoint source pollution, farm income and risk. A direct expected utility maximizing problem (DEMP) objective with a Von Neuman Morgenstern utility function was used in deriving optimal cropping systems. A biophysical simulation model provided input for the optimization. Three types of policies-taxing, regulating the aggregate, and regulating the per acre level-were studied for two farm inputs-nitrogen and atazine. It was observed that policies had varied and multiple cross-effects on pollutant loads, farm income, and risk. This information is crucial in developing successful policies toward improving water quality. If an appropriate input policy is chosen, both targeted and nontargeted pollutant loads can be managed. The three policies varied in their effects on pollutant loads and involved tradeoffs in water quality and economic attributes.

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    Article provided by Northeastern Agricultural and Resource Economics Association in its journal Agricultural and Resource Economics Review.

    Volume (Year): 26 (1997)
    Issue (Month): 1 (April)

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    Handle: RePEc:ags:arerjl:31366
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    1. John B. Braden & Gary V. Johnson & Aziz Bouzaher & David Miltz, 1989. "Optimal Spatial Management of Agricultural Pollution," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 71(2), pages 404-413.
    2. Young, C. Edwin & Crowder, Bradley M., 1986. "Managing Nutrient Losses: Some Empirical Results On The Potential Water Quality Effects," Northeastern Journal of Agricultural and Resource Economics, Northeastern Agricultural and Resource Economics Association, vol. 15(2), October.
    3. David K. Lambert & Bruce A. McCarl, 1985. "Risk Modeling Using Direct Solution of Nonlinear Approximations of the Utility Function," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 67(4), pages 846-852.
    4. H.P. Mapp & D.J. Bernardo & G.J. Sabbagh & S. Geleta & K.B. Watkins, 1994. "Economic and Environmental Impacts of Limiting Nitrogen Use to Protect Water Quality: A Stochastic Regional Analysis," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 76(4), pages 889-903.
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