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A graph efficiency multiproduct model of corn/livestock farming: Accounting for nitrate pollution

Abstract::
This paper estimates a non-parametric production frontier for a population of 117 corn/livestock farms in the Corn Belt region in 1987, employing a hyperbolic graph efficiency approach. There are 7 outputs, 39 variable inputs, 4 fixed inputs, and one bad input (residual nitrogen). Three graph efficiency models are estimated. A profit maximization model is specified to estimate a production frontier constrained only by the fixed factors. Two other models involving tax constraints are also estimated. One involves a tax directly on nitrogen and the other involves a tax directly on residual nitrogen, making the disposal of residual nitrogen costly. The nitrogen tax constraint is more effective in reducing residual nitrogen loadings and causes a larger reduction in income than the residual tax constraint.
Author(s):
Somwaru, Agapi , Nehring, Richard
Subject(s):
Zea mays , corn , livestock , nitrate nitrogen , pollution load , economic analysis , econometric models , taxes , economic impact , crop production , animal production , Corn Belt region
Description:
Includes references
Source:
Annals of operations research 1996 Sept., v. 68, no. 3
Language:
English
Year:
1996
Collection:
Journal Articles, USDA Authors, Peer-Reviewed
File:
Download [PDF]   
Rights:
Works produced by employees of the U.S. Government as part of their official duties are not copyrighted within the U.S. The content of this document is not copyrighted.