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

Journal of Agricultural and Resource Economics, Vol. 32, No. 2, pp. 273-290, August 2007

Posted: 19 Sep 2007

See all articles by Craig A. Bond

Craig A. Bond

Colorado State University, Fort Collins - Department of Agriculture and Resource Economics

Y. Hossein Farzin

University of California, Davis - Department of Agricultural and Resource Economics; Oxford Centre for the Analysis of Resource Rich Economies (OxCarre)

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 range from $8-$21 for trips, while shadow prices for pints of pesticides averaged $23-$37.

Keywords: Environmental efficiency index, shadow price, directional distance function

JEL Classification: Q52, Q12, C63, C13, D24

Suggested Citation

Bond, Craig A. and Farzin, Y. Hossein, Estimating Agricultural Pollution Abatement Costs at the Plot Level Using Experimental Data: A Maximum Entropy Approach. Journal of Agricultural and Resource Economics, Vol. 32, No. 2, pp. 273-290, August 2007, Available at SSRN: https://ssrn.com/abstract=1012920

Craig A. Bond (Contact Author)

Colorado State University, Fort Collins - Department of Agriculture and Resource Economics ( email )

Fort Collins, CO 80523
United States

Y. Hossein Farzin

University of California, Davis - Department of Agricultural and Resource Economics ( email )

One Shields Avenue
Davis, CA 95616
United States
530-752-7610 (Phone)
530-752-5614 (Fax)

HOME PAGE: http://farzin.ucdavis.edu/

Oxford Centre for the Analysis of Resource Rich Economies (OxCarre) ( email )

University of Oxford, Department of Economics
Manor Road
Oxford, OX1 4AU
United Kingdom

HOME PAGE: http://www.oxcarre.ox.ac.uk

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