Estimating Agricultural Pollution Abatement Costs at the Plot Level Using Experimental Data: A Maximum Entropy Approach

Craig A. Bond and Y. Hossein Farzin (farzin@primal.ucdavis.edu)

Journal of Agricultural and Resource Economics, 2007, vol. 32, issue 2, 18

Abstract: This paper uses a directional output distance function to estimate a multi-output production frontier for a sample of experimental plots grown for the Sustainable Agriculture Farming Systems project at the University of California, Davis. Cross-sectional technical efficiency indices are estimated that take into account two proxies for undesirable output: number of trips across a field as a proxy for air pollution and/or soil erosion, and pints of pesticides applied to account for potential leaching and/or health risks. Shadow price estimates based on marginal rates of transformation ranged from $8-$21 for trips, while shadow prices for pints of pesticides averaged $23-$27.

Keywords: Environmental; Economics; and; Policy (search for similar items in EconPapers)
Date: 2007
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Persistent link: https://EconPapers.repec.org/RePEc:ags:jlaare:8642

DOI: 10.22004/ag.econ.8642

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