Examining Quantity and Quality Effects of Restricting Nitrogen Applications to Feedgrains

Joseph A. Atwood and Glenn A. Helmers

American Journal of Agricultural Economics, 1998, vol. 80, issue 2, 369-381

Abstract: Restricting the timing and level of nitrogen applications has been proposed as a response to nitrate contamination in Nebraska. Agronomic research indicates that reducing available nitrogen reduces both the yield (quantity) and protein content (quality) of feedgrains. A differential system is developed to estimate the social costs of regulation while simultaneously considering both quantity and quality effects of a tax and/or a rationing policy. The results indicate that ignoring the quality effects of a proposed policy can lead to erroneous estimates of changes in factor use, output responses, and the social costs of regulation. Copyright 1998, Oxford University Press.

Date: 1998
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