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Environmental Indices for the Chinese Grain Sector

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  • Chen, Ming
  • Karp, Larry S.

Abstract

Increased population pressure and political decisions have led to more intensive agricultural practices in China. As in other regions of the world, these practices can damage natural capital We use the Kalman filter and Chinese panel data to estimate an index of environmental productivity (natural capital), together with the parameters of environmental dynamics and the production function. These estimates show that intensive practices are likely to have had persistent, substantial, and statistically significant negative effects on productivity. Ignoring these effects can cause substantial misallocation of resources. The results illustrate the possibility of estimating sectoral environmental indices using data commonly available.

Suggested Citation

  • Chen, Ming & Karp, Larry S., 2001. "Environmental Indices for the Chinese Grain Sector," CUDARE Working Papers 6259, University of California, Berkeley, Department of Agricultural and Resource Economics.
    • Handle: RePEc:ags:ucbecw:6259
    DOI: 10.22004/ag.econ.6259
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    References listed on IDEAS

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    1. Shenggen Fan, 1991. "Effects of Technological Change and Institutional Reform on Production Growth in Chinese Agriculture," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 73(2), pages 266-275.
    2. Edward C. Jaenicke & Laura L. Lengnick, 1999. "A Soil-Quality Index and Its Relationship to Efficiency and Productivity Growth Measures: Two Decompositions," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 81(4), pages 881-893.
    3. Carlson, Gerald A. & Zilberman, David & Miranowski, John, 1993. "Agricultural and Resource Economics," Staff General Research Papers Archive 11104, Iowa State University, Department of Economics.
    4. Jikun Huang & Scott Rozelle, 1995. "Environmental Stress and Grain Yields in China," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 77(4), pages 853-864.
    5. Golan, Amos & Judge, George & Karp, Larry, 1996. "A maximum entropy approach to estimation and inference in dynamic models or Counting fish in the sea using maximum entropy," Journal of Economic Dynamics and Control, Elsevier, vol. 20(4), pages 559-582, April.
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