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Efficiency and innovation offsets in non-point source pollution control and the role of education

Ada Wossink and Zulal Sogutlu Denaux

International Journal of Agricultural Resources, Governance and Ecology, 2007, vol. 6, issue 1, 79-95

Abstract: This paper discusses and empirically analyses the implications of efficiency and innovation offsets for the management of non-point source pollution from agriculture. If efficiency improvements and green innovation indeed combine environmental advantages with economic advantages, these offsets would offer a free lunch adjustment to environmental regulations. A theoretical model of the farm is developed where pollution is a joint output of production, where inefficiency in production prevails and environmental innovations are available. We discuss whether education about environmentally friendlier farming practices is effective in such a context. The empirical analysis addresses pesticide use in conventional and genetically modified cotton production in North Carolina, USA. The conceptual model was implemented by means of the non-parametric directional distance function approach in Data Envelopment Analysis (DEA).

Keywords: nonpoint source pollution; agricultural extension; Porter hypothesis; environmental indicators; innovation; pesticides; genetically modified cotton; GM cotton; directional distance function; data envelopment analysis; DEA; agriculture; pollution control; education; environmentally friendly farming. (search for similar items in EconPapers)
Date: 2007
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Handle: RePEc:ids:ijarge:v:6:y:2007:i:1:p:79-95