Campus Units

Economics

Document Type

Article

Publication Version

Published Version

Publication Date

1995

Journal or Book Title

Journal of Agricultural and Resource Economics

Volume

20

Issue

1

First Page or Article ID Number

122

Last Page

134

Abstract

This paper investigates the effects of first-best policies to regulate nitrogen application. Some nitrogen fertilizer is applied ex ante before a random rainfall, but side dressed nitrogen may be applied ex post. First-best policy is a tax or a quota on ex ante application, because side dressed nitrogen is not leached. Since a risk-averse farmer uses more nitrogen ex ante than a risk-neutral farmer, a higher tax must be imposed on the former. Action equivalent first-best taxes and quotas are also welfare equivalent. An empirical model for wheat in Israel was used to demonstrate the analytical

Comments

This is an article from Journal of Agricultural and Resource Economics 20 (1995): 122. Posted with permission.

Copyright Owner

Western Agricultural Economics Association

Language

en

File Format

application/pdf

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