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Effective Costs And Chemical Use In U.S. Agricultural Production: Benefits And Costs Of Using The Environment As A "Free" Input

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  • Morrison Paul, Catherine J.
  • Ball, V. Eldon
  • Felthoven, Ronald G.
  • Nehring, Richard F.

Abstract

This study uses a cost-function-based model of production processes in U.S. agriculture to represent producers' input and output decisions, and the implied costs of reductions in risk associated with leaching and runoff from agricultural chemical use. The model facilitates evaluation of the statistical significance of measured shadow values for "bad" outputs, and their input- and output-specific components, with a focus on the impacts on pesticide demand and its quality and quantity aspects. The shadow values of risk reduction are statistically significant, and imply increased demand for effective pesticides over time that stem largely from improvements in quality due to embodied technology, and that vary substantively by region.

Suggested Citation

  • Morrison Paul, Catherine J. & Ball, V. Eldon & Felthoven, Ronald G. & Nehring, Richard F., 2000. "Effective Costs And Chemical Use In U.S. Agricultural Production: Benefits And Costs Of Using The Environment As A "Free" Input," Working Papers 11986, University of California, Davis, Department of Agricultural and Resource Economics.
    • Handle: RePEc:ags:ucdavw:11986
    DOI: 10.22004/ag.econ.11986
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    References listed on IDEAS

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    4. J. C. Headley, 1968. "Estimating the Productivity of Agricultural Pesticides," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 50(1), pages 13-23.
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