Efficiency and Innovation Offsets in Nonpoint- Source Pollution Control and the Role of Education

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Authors

Wossink, Ada
Denaux, Zulal S.

Issue Date

2004-02

Type

Preprint

Language

en_US

Keywords

Agricultural extension , Non-point source pollution , Porter hypothesis , Environmental indicator , Pesticides , Genetically modified cotton , Directional distance function

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Abstract

This paper discusses and empirically analyzes the implications of efficiency and innovation offsets for the management of non-point source pollution from agriculture. If efficiency improvements and green innovation indeed combine environmental advantages with economic advantages, these offsets would offer a free lunch adjustment to environmental regulations. A theoretical model of the farm is developed where pollution is a joint output of production, where inefficiency in production prevails and environmental innovations are available. We discuss whether education about environmentally friendlier farming practices is effective in such a context. The empirical analysis addresses pesticide use in conventional and genetically modified cotton production in North Carolina, USA. The conceptual model was implemented by means of the non-parametric directional distance function approach (Data Envelopment Analysis, DEA).

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Valdosta State University

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Copyright protected. Unauthorized reproduction or use beyond the exceptions granted by the Fair Use clause of U.S. Copyright law may violate federal law.

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