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A Bayesian Approach to Analyzing the Economic Costs of Environmental Regulation in U.S. Dairy Farming

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  • Njuki, Eric
  • Bravo-Ureta, Boris B.

Abstract

This paper develops a comprehensive pollution index based on EPA (2009) methodologies, which contrasts with previous studies that rely on partial measures based only on surplus nitrogen stemming from the over-application of fertilizer. Second, it uses a directional output distance function on a Bayesian framework, to generate empirical estimates of the economic impact associated with hypothetical environmental regulations in the dairy sector. Results indicate that on average, values of foregone output following regulatory intervention lead to revenue losses ranging from 1.8% to 13.1% across different regions between 1978 and 2007.

Suggested Citation

  • Njuki, Eric & Bravo-Ureta, Boris B., 2014. "A Bayesian Approach to Analyzing the Economic Costs of Environmental Regulation in U.S. Dairy Farming," Working Paper series 290098, University of Connecticut, Charles J. Zwick Center for Food and Resource Policy.
    • Handle: RePEc:ags:ucozwp:290098
    DOI: 10.22004/ag.econ.290098
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    References listed on IDEAS

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    Cited by:

    1. Holtkamp, A.M. & Brummer, B., 2018. "Environmental efficiency of smallholder rubber production," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277518, International Association of Agricultural Economists.

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    More about this item

    Keywords

    Demand and Price Analysis; Livestock Production/Industries; Research Methods/ Statistical Methods;
    All these keywords.

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
    • Q52 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Pollution Control Adoption and Costs; Distributional Effects; Employment Effects

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