Environmental Indices for the Chinese Grain Sector

Ming Chen and Larry Karp

No 6259, CUDARE Working Papers from University of California, Berkeley, Department of Agricultural and Resource Economics

Abstract: Increased population pressure and political decisions have led to more intensive agricultural practices in China. As in other regions of the world, these practices can damage natural capital We use the Kalman filter and Chinese panel data to estimate an index of environmental productivity (natural capital), together with the parameters of environmental dynamics and the production function. These estimates show that intensive practices are likely to have had persistent, substantial, and statistically significant negative effects on productivity. Ignoring these effects can cause substantial misallocation of resources. The results illustrate the possibility of estimating sectoral environmental indices using data commonly available.

Keywords: Crop Production/Industries; Environmental Economics and Policy; Productivity Analysis (search for similar items in EconPapers)
Pages: 25
Date: 2001
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Working Paper: Environmental Indices for the Chinese Grain Sector (2001)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:ucbecw:6259

DOI: 10.22004/ag.econ.6259

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