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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

Author

Listed:
  • 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.

Suggested Citation

  • Saleem Shaik & Glenn A Helmers & Michael Langemeier, 2005. "'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," Development and Comp Systems 0512023, University Library of Munich, Germany.
  • Handle: RePEc:wpa:wuwpdc:0512023
    Note: Type of Document - pdf; pages: 13.
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    File URL: https://econwpa.ub.uni-muenchen.de/econ-wp/dev/papers/0512/0512023.pdf
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    References listed on IDEAS

    as
    1. Frank M. Gollop & Gregory P. Swinand, 1998. "From Total Factor to Total Resource Productivity: An Application to Agriculture," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(3), pages 577-583.
    2. Russell W. Pittman, 1981. "Issue in Pollution Control: Interplant Cost Differences and Economies of Scale," Land Economics, University of Wisconsin Press, vol. 57(1), pages 1-17.
    3. Shaik, Saleem, 2005. "Environmentally Adjusted Elasticity Measures," 2005 Annual Meeting, February 5-9, 2005, Little Rock, Arkansas 35645, Southern Agricultural Economics Association.
    4. 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.
    5. 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).
    6. Coggins, Jay S. & Swinton, John R., 1996. "The Price of Pollution: A Dual Approach to Valuing SO2Allowances," Journal of Environmental Economics and Management, Elsevier, vol. 30(1), pages 58-72, January.
    7. Rolf Färe & 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.
    8. 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 447-460, August.
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    10. 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.
    11. Fare, Rolf, et al, 1989. "Multilateral Productivity Comparisons When Some Outputs Are Undesirable: A Nonparametric Approach," The Review of Economics and Statistics, MIT Press, vol. 71(1), pages 90-98, February.
    12. 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.
    13. 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 654-674, August.
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    More about this item

    Keywords

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

    JEL classification:

    • O - Economic Development, Innovation, Technological Change, and Growth
    • P - Economic Systems

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