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Ozone stress and crop harvesting failure: Evidence from US food production

Ziheng Liu and Qinan Lu

Food Policy, 2023, vol. 121, issue C

Abstract: Farmers react to ozone injury by abandoning crops when the expected revenues cannot compensate for the harvesting costs. This study provides the first empirical evidence of ozone pollution’s impact on the decision to abandon crops. Using a causal inference framework, we find evidence that a one-standard-deviation rise in ozone concentration decreases the harvested ratios of corn and soybeans by 0.133 and 0.151 standard deviations, respectively. Our bootstrap simulation results show that the agricultural production benefits from ozone control would be considerably underestimated for both corn and soybeans without accounting for the saved acreage that should have been abandoned. The re-estimated benefits of agricultural production from ozone control inform policy design regarding air pollution management and highlight the importance of research and development in ozone-tolerance traits. We also discuss the effects of insurance and price regimes on agricultural production by providing evidence that insurance enrollment rates and crop prices are imperative for adaptation to ozone stress, which facilitates insurance design to mitigate the adaptation disincentive.

Keywords: Ozone stress; Crop abandonment; Agricultural production; Air pollution management; Adaptation disincentive (search for similar items in EconPapers)
JEL-codes: Q15 Q18 Q51 Q52 Q53 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jfpoli:v:121:y:2023:i:c:s0306919223001380

DOI: 10.1016/j.foodpol.2023.102540

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