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Trade-Off Analysis Of Herbicide Withdrawals On Agricultural Production And Groundwater Quality

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  • Liu, Shiping
  • Carlson, Gerald A.
  • Hoag, Dana L.

Abstract

This study examines the trade-off between agricultural production and groundwater contamination potential for ten potential herbicide cancellations. Theoretical and empirical models are developed for estimating losses in consumer and producer benefits in the agricultural commodity market and changes in groundwater quality. Using corn and soybean production in the southeastern Coastal Plain as a study area, the analysis concludes that (1) effects of herbicide cancellations on groundwater quality can be very significant; (2) a cancellation does not guarantee groundwater quality improvement; (3) effects of a multiple cancellation are different from the summation of the effects of independent cancellations; and (4) weed density has a very strong effect on losses to farmers and consumers from cancellations, but output demand and supply elasticities do not.

Suggested Citation

  • Liu, Shiping & Carlson, Gerald A. & Hoag, Dana L., 1995. "Trade-Off Analysis Of Herbicide Withdrawals On Agricultural Production And Groundwater Quality," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 27(01), pages 1-18, July.
    • Handle: RePEc:ags:joaaec:15330
    DOI: 10.22004/ag.econ.15330
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    References listed on IDEAS

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    1. Craig Osteen & Fred Kuchler, 1987. "Pesticide regulatory decisions: Production efficiency, equity, and interdependence," Agribusiness, John Wiley & Sons, Ltd., vol. 3(3), pages 307-322.
    2. Raymond J. Kopp & Alan J. Krupnick, 1987. "Agricultural Policy and the Benefits of Ozone Control," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 69(5), pages 956-962.
    3. Carlson, Gerald A. & Zilberman, David & Miranowski, John, 1993. "Agricultural and Resource Economics," Staff General Research Papers Archive 11104, Iowa State University, Department of Economics.
    4. Nielsen, Elizabeth G. & Lee, Linda K., 1987. "The Magnitude and Costs of Groundwater Contamination from Agricultural Chemicals: A National Perspective," Agricultural Economic Reports 308032, United States Department of Agriculture, Economic Research Service.
    5. Nielsen, Elizabeth G. & Lee, Linda K., 1987. "The Magnitude And Costs Of Groundwater Contamination From Agricultural Chemicals: A National Perspective," Staff Reports 277938, United States Department of Agriculture, Economic Research Service.
    6. Carolyn R. Harper & David Zilberman, 1989. "Pest Externalities from Agricultural Inputs," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 71(3), pages 692-702.
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    Cited by:

    1. Mafoua, Edouard & Hornbaker, Robert H., 2006. "Cost-Effectiveness of Alternative Environmental Policies for Reducing Non-Point Source Pollution in Public Water Supplies," 2006 Annual Meeting, February 5-8, 2006, Orlando, Florida 35297, Southern Agricultural Economics Association.

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