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

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 ranged from $8-$21 for trips, while shadow prices for pints of pesticides averaged $23-$27.

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Journal Article
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Journal of Agricultural and Resource Economics, Volume 32, Number 2
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 Record created 2017-04-01, last modified 2017-08-23

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