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Ozone Pollution and Farm Profits in England and Wales

[Zeitschriftenartikel]

Neeliah, Harris; Shankar, Bhavani

Zitationshinweis

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Abstract Tropospheric ozone is an air pollutant known to adversely affect crop yields across Europe. Experimental work is underway to quantify yield effects at ambient ozone levels for a number of crops. In this paper, we undertake direct, farm-level evaluation of the impact of ozone by estimating a multi-output profit function using a panel dataset of cereal farms in England and Wales. A system of equations, comprising the profit function, input and output share equations is estimated using a fixed-effects seemingly unrelated regression technique, with ozone as a quasi-fixed input. Estimated parameters are used to calculate tropospheric ozone-related profit and output supply elasticities. The main findings from the profit function show that a 10% increase in average ozone levels would decrease variable profits by 1.3% and wheat output supply by 1%. These results are of a significantly lower magnitude, but qualitatively consistent with findings from similar studies carried out in North America.
Klassifikation Wirtschaftssektoren; Naturwissenschaften, Technik(wissenschaften), angewandte Wissenschaften
Sprache Dokument Englisch
Publikationsjahr 2009
Seitenangabe S. 2449-2458
Zeitschriftentitel Applied Economics, 42 (2009) 19
DOI http://dx.doi.org/10.1080/00036840701858158
ISSN 1466-4283
Status Postprint; begutachtet (peer reviewed)
Lizenz PEER Licence Agreement (applicable only to documents from PEER project)
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