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On the usefulness of the directional distance function in analyzing environmental policy on manure management

Author

Listed:
  • Isabelle Piot-Lepetit

    (Économie et Sociologie Rurales - INRA - Institut National de la Recherche Agronomique)

  • . American Agricultural Economics Association

    (AAEA - American Agricultural Economics Association)

Abstract

The purpose of this paper is to model the manure management policy implemented in the European Union, and more specifically the limit imposed on the spreading of organic nitrogen. A theoretical model is defined in such a way that a number of specificities concerning livestock production can be introduced.The theoretical framework is used to investigate how the land can be shared out optimally between the non-productive purpose of spreading manure in a manner compliant with the environmental regulation and the productive function of providing crops.Then,we define an empirical model derived from the previous theoretical model, using the directional distance function.It provides a framework for deriving shadow prices of pollutant, of productive and non productive use of land and of the constraint on organic manure involved by the European environmental regulation.

Suggested Citation

  • Isabelle Piot-Lepetit & . American Agricultural Economics Association, 2006. "On the usefulness of the directional distance function in analyzing environmental policy on manure management," Post-Print hal-02290716, HAL.
    • Handle: RePEc:hal:journl:hal-02290716
    Note: View the original document on HAL open archive server: https://hal.science/hal-02290716
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    References listed on IDEAS

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    1. Baumol,William J. & Oates,Wallace E., 1988. "The Theory of Environmental Policy," Cambridge Books, Cambridge University Press, number 9780521322249, September.
    2. Fare, Rolf & Grosskopf, Shawna & Noh, Dong-Woon & Weber, William, 2005. "Characteristics of a polluting technology: theory and practice," Journal of Econometrics, Elsevier, vol. 126(2), pages 469-492, June.
    3. Rolf Färe & Shawna Grosskopf, 1998. "Shadow Pricing of Good and Bad Commodities," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(3), pages 584-590.
    4. Cropper, Maureen L & Oates, Wallace E, 1992. "Environmental Economics: A Survey," Journal of Economic Literature, American Economic Association, vol. 30(2), pages 675-740, June.
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