Incorporating environmental impacts in the measurement of agricultural productivity growth

Agricultural production is known to have environmental impacts, both adverse and beneficial, and it is desirable to incorporate at least some of these impacts in an environmentally sensitive productivity index. In this paper, we construct indicators of water contamination from the use of agricultura...

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Published in:Journal of agricultural and resource economics 2004-12, Vol.29 (3), p.436-460
Main Authors: Ball, V.E, Lovell, C.A.K, Luu, H, Nehring, R
Format: Article
Language:English
Subjects:
agricultural economics
Crop economics
Distance functions
econometric models
Economic indices
Environmental impact
Environmental impact assessment
environmental impacts
environmental indicators
Farm economics
Market prices
Pesticides
prices
Productivity
Productivity growth
water pollution
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container_start_page 436
container_title Journal of agricultural and resource economics
container_volume 29
creator Ball, V.E
Lovell, C.A.K
Luu, H
Nehring, R
description Agricultural production is known to have environmental impacts, both adverse and beneficial, and it is desirable to incorporate at least some of these impacts in an environmentally sensitive productivity index. In this paper, we construct indicators of water contamination from the use of agricultural chemicals. These environmental indicators are merged with data on marketed outputs and purchased inputs to form a state-by-year panel of relative levels of outputs and inputs, including environmental impacts. We do not have prices for these undesirable by products, since they are not marketed. Consequently, we calculate a series of Malmquist productivity indexes, which do not require price information. Our benchmark scenario is a conventional Malmquist productivity index based on marketed outputs and purchased inputs only. Our comparison scenarios consist of environmentally sensitive Malmquist productivity indexes that include indicators of risk to human health and to aquatic life from chronic exposure to pesticides. In addition, we derive a set of virtual prices of the undesirable by-products that can be used to calculate an environmentally sensitive Fisher index of productivity change.
doi_str_mv 10.22004/ag.econ.30911
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source EconLit s plnými texty; Publicly Available Content Database; JSTOR Archival Journals and Primary Sources Collection; ABI/INFORM Global
subjects agricultural economics
Crop economics
Distance functions
econometric models
Economic indices
Environmental impact
Environmental impact assessment
environmental impacts
environmental indicators
Farm economics
Market prices
Pesticides
prices
Productivity
Productivity growth
water pollution
title Incorporating environmental impacts in the measurement of agricultural productivity growth
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