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The Impact of Agricultural Land Use Change on Lake Water Quality: Evidence from Iowa

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  • Meyer, Kevin

Abstract

The environmental impacts of agricultural policies must be quantified to perform full cost-benefit analyses and make informed policy decisions. In this paper I use a unique panel data set to estimate the effect of changes in cropland on lake water quality. Fifteen years of water quality measurements across over 100 lakes are combined with satellite imagery and weather data. Using a dynamic panel data model, I find that the elasticity of water quality to cropland is 0.0535. To understand the policy implications, I estimate a second model to find the elasticity of cropland to crop prices. I combine these estimates to analyze the effect of the Renewable Fuel Standard (RFS). I find that the RFS decreased lake water quality; however, the magnitude of this effect is negligible.

Suggested Citation

  • Meyer, Kevin, 2018. "The Impact of Agricultural Land Use Change on Lake Water Quality: Evidence from Iowa," Studies in Agricultural Economics, Research Institute for Agricultural Economics, vol. 120(2), August.
    • Handle: RePEc:ags:stagec:276089
    DOI: 10.22004/ag.econ.276089
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    References listed on IDEAS

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    1. David Roodman, 2009. "How to do xtabond2: An introduction to difference and system GMM in Stata," Stata Journal, StataCorp LP, vol. 9(1), pages 86-136, March.
    2. Manuel Arellano & Stephen Bond, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 58(2), pages 277-297.
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    Cited by:

    1. Deok-Woo Kim & Eu Gene Chung & Eun Hye Na & Youngseok Kim, 2024. "Spatial Correlations between Nitrogen Budgets and Surface Water and Groundwater Quality in Watersheds with Varied Land Covers," Agriculture, MDPI, vol. 14(3), pages 1-17, March.
    2. Jayash Paudel & Christine L. Crago, 2021. "Environmental Externalities from Agriculture: Evidence from Water Quality in the United States," American Journal of Agricultural Economics, John Wiley & Sons, vol. 103(1), pages 185-210, January.
    3. Zach Raff & Andrew Meyer, 2022. "CAFOs and Surface Water Quality: Evidence from Wisconsin," American Journal of Agricultural Economics, John Wiley & Sons, vol. 104(1), pages 161-189, January.

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