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An econometric assessment of the productivity consequences of low-input farming

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  • Yir-Hueih Luh
  • Ziau-Ning Liao

Abstract

This study examines the possible impacts of low-input farming on the growth of productivity. Specifically, emphasis is placed upon disentangling the effect of overusing chemical inputs and that of the market determinants. Taking into account both production and price uncertainty, the expected utility maximization criterion explicitly incorporating damage control function of pesticides is used to determine farmers' rational demand of chemical inputs. The actual use of chemical inputs and the theoretical use consistent with expected utility maximization are used to establish an overusing index, which later is incorporated into the dual cost function to examine the productivity consequences of overusing chemicals. Simulation analyses of various policy scenarios suggest the positive impact of low-input farming.

Suggested Citation

  • Yir-Hueih Luh & Ziau-Ning Liao, 2001. "An econometric assessment of the productivity consequences of low-input farming," Applied Economics Letters, Taylor & Francis Journals, vol. 8(10), pages 687-692.
    • Handle: RePEc:taf:apeclt:v:8:y:2001:i:10:p:687-692
    DOI: 10.1080/13504850110061681
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    References listed on IDEAS

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    1. Erik Lichtenberg & David Zilberman, 1986. "The Econometrics of Damage Control: Why Specification Matters," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 68(2), pages 261-273.
    2. Gollop, Frank M & Roberts, Mark J, 1983. "Environmental Regulations and Productivity Growth: The Case of Fossil-Fueled Electric Power Generation," Journal of Political Economy, University of Chicago Press, vol. 91(4), pages 654-674, August.
    3. Stephen L. Ott, 1990. "Supermarket shoppers' pesticide concerns and willingness to purchase certified pesticide residue-free fresh produce," Agribusiness, John Wiley & Sons, Ltd., vol. 6(6), pages 593-602.
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    1. Lavee, Doron, 2010. "The effect of water supply uncertainty on farmers' choice of crop portfolio," Agricultural Water Management, Elsevier, vol. 97(11), pages 1847-1854, November.
    2. Charles Moss & Troy Schmitz, 2006. "A semiparametric estimator of the Zellner production function for corn: fitting the univariate primal," Applied Economics Letters, Taylor & Francis Journals, vol. 13(13), pages 863-867.

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