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SEQUENTIAL INVESTMENT IN SITE-SPECIFIC CROP MANAGEMENT UNDER OUTPUT PRICE UNCERTAINTY: IMPLICATIONS FOR NITROGEN POLLUTION CONTROL AgEcon
Isik, Murat; Khanna, Madhu; Winter-Nelson, Alex.
This paper develops an option value model to examine the extent to which output price uncertainty creates incentives to adopt two interrelated components of site-specific technologies sequentially. It analyzes how the impact of uncertainty on the sequential adoption decision differs across heterogeneous soil conditions, and examines the implications of adoption for nitrogen pollution generation and for the design of a cost-share subsidy policy.
Tipo: Conference Paper or Presentation Palavras-chave: Environmental Economics and Policy; Research and Development/Tech Change/Emerging Technologies; Research Methods/ Statistical Methods.
Ano: 2000 URL: http://purl.umn.edu/21875
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Competitiveness of Brazilian Sugarcane Ethanol Compared to US Corn Ethanol AgEcon
Crago, Christine Lasco; Khanna, Madhu; Barton, Jason; Giuliani, Eduardo; Amaral, Weber.
Corn ethanol produced in the US and sugarcane ethanol produced in Brazil are the world’s leading sources of biofuel. Current US biofuel policies create both incentives and constraints for the import of ethanol from Brazil, and together with the competitiveness and greenhouse gas intensity of sugarcane ethanol compared to corn ethanol will determine the extent of these imports. This study analyzes the supply-side determinants of this competitiveness and compares the greenhouse gas intensity of corn ethanol and sugarcane ethanol delivered to US ports. We find that while the cost of sugarcane ethanol production in Brazil is lower than that of corn ethanol in the US, the inclusion of transportation costs for the former and co-product credits for the latter...
Tipo: Conference Paper or Presentation Palavras-chave: Economic competitiveness; Renewable fuel standard; Ethanol trade policy; Agribusiness; Agricultural and Food Policy.
Ano: 2010 URL: http://purl.umn.edu/60895
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Why Do Firms Strive to Be Green? Explaining the Adoption of Total Quality Environmental Management AgEcon
Harrington, Donna Ramirez; Khanna, Madhu; Deltas, George.
Many firms are undertaking environmentally friendly organizational change by applying the philosophy of Total Quality Management with its emphasis on reducing waste and increasing efficiency to improve their management of pollution. This paper investigates the factors that lead to total quality environmental management (TQEM) by large firms. We find that internal considerations stemming from a firm's technical capability, size of operations, and volume of past emissions are positively associated with the TQEM adoption decision. The first two factors are proxies for the firm's costs of adopting TQEM while the third factor is related to the benefits from increasing efficiency and waste reduction, and thus proxies for internally generated demand for TQEM. In...
Tipo: Working or Discussion Paper Palavras-chave: Firm Organizational Structure; Regulatory and Market Pressures; Toxic Pollution; Environmental Economics and Policy; D23; M11.
Ano: 2005 URL: http://purl.umn.edu/34125
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GREEN MANAGEMENT AND THE NATURE OF TECHNICAL INNOVATION AgEcon
Deltas, George; Harrington, Donna Ramirez; Khanna, Madhu.
Innovation is a key component of a firm's strategy to improve market competitiveness and operational efficiency as well as to respond effectively to changing consumer preferences and regulations. A firm has the choice of undertaking different types of innovations that differ in the extent to which they involve changes in products, processes or practices and lead to gains in efficiency or brand image. We postulate that the extent and nature of innovation undertaken by a firm depends on its management system which not only influences its organizational structure, but also the incentives for making continual improvement in its technical capabilities, the extent of employee involvement in decision making and the internal communication channels for information...
Tipo: Conference Paper or Presentation Palavras-chave: Environmental Economics and Policy; Research and Development/Tech Change/Emerging Technologies.
Ano: 2006 URL: http://purl.umn.edu/34185
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INVESTMENT IN SITE SPECIFIC CROP MANAGEMENT UNDER UNCERTAINTY AgEcon
Isik, Murat; Khanna, Madhu; Winter-Nelson, Alex.
This paper examines the impact of price uncertainty on farmers' adoption decision in site specific crop management using an option value model. It shows that price uncertainty could lead farmers to delay the investment 3 to 25 years as opposed to the net present value rule. Immediate investment is only worthwhile on high soil fertility and soil quality fields with high variability.
Tipo: Conference Paper or Presentation Palavras-chave: Crop Production/Industries; Risk and Uncertainty.
Ano: 1999 URL: http://purl.umn.edu/21684
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Meeting Biofuels Targets: Implications for Land Use, Greenhouse Gas Emissions and Nitrogen Use in Illinois AgEcon
Khanna, Madhu; Onal, Hayri; Chen, Xiaoguang; Huang, Haixiao.
This article develops a dynamic micro-economic land use model to identify the cost-effective allocation of cropland for traditional row crops and perennial grasses and the mix of cellulosic feedstocks needed to meet pre-determined biofuel targets over the 2007-2022 period. Yields of perennial grasses are obtained from a biophysical model and together with county level data on costs of production for Illinois are used to examine the implications of these targets for crop and biofuel costs, greenhouse gas emissions, and nitrogen use. The economic viability of cellulosic feedstocks is found to depend on their yields per acre and the opportunity cost of land. The mix of viable cellulosic feedstocks varies spatially and temporally with corn stover and...
Tipo: Conference Paper or Presentation Palavras-chave: Environmental Economics and Policy; Land Economics/Use.
Ano: 2008 URL: http://purl.umn.edu/53491
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Political Economy and Irrigation Technology Adoption Implications of Water Pricing under Asymmetric Information AgEcon
Dridi, Chokri; Khanna, Madhu.
We analyze the design of water pricing rules emerging from farmers' lobbying and their implications for the size of the lobby, water use, profits and social welfare. The lobbying groups are the adopters of modern irrigation technology and the non-adopters. The pricing rules are designed to meet budget balance of water provision; we considered (i) a two-part tariff composed of a mandatory per-acre fee plus a volumetric charge and (ii) a nonlinear pricing schedule. Our results show that under either pricing schemes, farmers can organize and affect the outcome of the water schedule design. When only a volumetric fee is levied, the budget balance constraint prevents lobbies from influencing the design of the pricing scheme. In terms of expected welfare, the...
Tipo: Conference Paper or Presentation
Ano: 2005 URL: http://purl.umn.edu/19348
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Cellulosic Biofuels: Are They Economically Viable and Environmentally Sustainable? AgEcon
Khanna, Madhu.
Tipo: Journal Article Palavras-chave: Miscanthus; Corn Stover; Switchgrass; Cost of Production; Greenhouse Gas Intensity; Resource /Energy Economics and Policy; Q01; Q54; Q55.
Ano: 2008 URL: http://purl.umn.edu/94665
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Adoption of Pollution Prevention: The Role of Information Spillover, Mandatory Regulation, and Voluntary Program Participation AgEcon
Bi, Xiang; Deltas, George; Khanna, Madhu.
Interest in promoting Pollution Prevention (P2) has been increasing since 1991, following the passage of the Pollution Prevention Act (PPA) of 1990. As part of the PPA, facilities that are subject to the Toxics Releases Inventory (TRI) are required to disclose the number of incremental P2 activities for each listed chemicals from 1991 onward. Though the disclosure is required by the PPA, the adoption of P2 remains a voluntary initiative by firms. To promote P2 ethic among firms, the U.S.EPA has established several voluntary programs and P2 information clearinghouse. P2 technologies were more likely to be facility- and operation- specific and involved considerable information costs and uncertainty. Firms might learn about P2 technologies from their peers...
Tipo: Conference Paper or Presentation Palavras-chave: Pollution prevention; Toxics Release Inventory (TRI); Voluntary 33/50 program; Information spillover; Environmental Economics and Policy; Q55; C21; L51.
Ano: 2011 URL: http://purl.umn.edu/103741
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Carbon Abatement in the Fuel Market with Biofuels: Implications for Second-Best Policies AgEcon
Crago, Christine Lasco; Khanna, Madhu.
A carbon tax would penalize carbon intensive fuels like gasoline and shift fuel consumption to less carbon intensive alternatives like biofuels. Since biofuel production competes for land with agriculture, a carbon tax could raise land rents, divert land towards fuel production, and raise agricultural prices. This paper analyzes the welfare effect of a carbon tax on fuel with gasoline and biofuel as available fuel choices, in the presence of a labor tax and biofuel subsidy. The second-best optimal carbon tax is also quantified. Findings show that when biofuels is part of the fuel mix, the carbon tax has a commodity price effect which arises from tax-induced changes in land rent. The commodity price effect could exacerbate or attenuate the tax interaction...
Tipo: Conference Paper or Presentation Palavras-chave: Carbon tax; Optimal fuel tax; Biofuel; Environmental Economics and Policy; Q42; Q48; Q54; H23.
Ano: 2010 URL: http://purl.umn.edu/60894
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Land Use and Greenhouse Gas Implications of Biofuels: Role of Technology and Policy AgEcon
Chen, Xiaoguang; Huang, Haixiao; Khanna, Madhu.
This paper examines the extensive and intensive margin changes in land use in the U.S. likely to be induced by biofuel policies and the implications of these policies for GHG emissions over the 2007-2022 period. The policies considered here include the Renewable Fuel Standard (RFS) by itself as well as combined with current biofuel tax credits or a carbon price policy. We use a dynamic, spatial, multi-market equilibrium model, Biofuel and Environmental Policy Analysis Model (BEPAM), to endogenously determine the effects of these policies on cropland allocation, food and fuel prices, and the mix of first and second-generation biofuels. We find that the increase in crop prices under the RFS is likely to be less than 20% in most cases and this increase is...
Tipo: Conference Paper or Presentation Palavras-chave: Biofuel Mandates; Land Use; GHG Emissions; Technology; Environmental Economics and Policy; Land Economics/Use; Resource /Energy Economics and Policy.
Ano: 2011 URL: http://purl.umn.edu/103216
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STOCHASTIC TECHNOLOGY, RISK PREFERENCES AND ADOPTION OF SITE-SPECIFIC TECHNOLOGIES AgEcon
Isik, Murat; Khanna, Madhu.
This paper develops a model of farmer decision-making to examine the extent to which uncertainties about the performance of site-specific technologies (SSTs) and about the weather impact the value of these technologies. The model uses the jointly estimated risk and technology parameters to examine the impacts of SSTs on returns and nitrogen pollution. The availability of uncertain soil information and production uncertainty can lead risk-averse farmers to apply more fertilizers and generate more pollution. Ignoring the impact of uncertainty and risk preferences of farmers leads to a significant overestimation of the economic and environmental benefits of SSTs and underestimation of the required subsidy for inducing adoption of SSTs. The model that accounts...
Tipo: Conference Paper or Presentation Palavras-chave: Spatial variability; Risk preferences; Joint estimation; Uncertainty; Technology adoption; Nitrogen runoff; Research and Development/Tech Change/Emerging Technologies.
Ano: 2002 URL: http://purl.umn.edu/19858
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A Prospective Analysis of Brazil and the U.S. Biofuel Policies: Impact on Land Use, Greenhouse Gas Emissions, and Social Welfare Using a Spatial Multi-Market Equilibrium Model AgEcon
Nunez, Hector M.; Onal, Hayri; Khanna, Madhu; Chen, Xiaoguang; Huang, Haixiao.
Tipo: Conference Paper or Presentation Palavras-chave: Environmental Economics and Policy; Marketing.
Ano: 2011 URL: http://purl.umn.edu/104019
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COST EFFECTIVE TARGETING OF LAND RETIREMENT TO IMPROVE WATER QUALITY: A MULTI-WATERSHED ANALYSIS AgEcon
Yang, Wanhong; Khanna, Madhu; Farnsworth, Richard L.; Onal, Hayri.
An integrated watershed management framework that combines economic, hydrologic and GIS modeling is developed to study cost effective land retirement in multiple watersheds to achieve off-site sediment reduction goal. This integrated framework examines two alternative standards-a uniform standard under which each watershed is required to achieve the same sediment reduction goal and a non-uniform standard under which marginal cost of sediment abatement is equal across watersheds. Furthermore, for each standard, costs of abatement under two alternative rental instruments based on marginal cost of sediment abatement ($/ton) and uniform payments per acre ($/acre) are examined. Then the cost effectiveness of the four policy options (uniform standard with $/ton...
Tipo: Conference Paper or Presentation Palavras-chave: Land Economics/Use.
Ano: 2001 URL: http://purl.umn.edu/20687
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VARIABLE-RATE NITROGEN APPLICATION UNDER UNCERTAINTY: IMPLICATIONS FOR PROFITABILITY AND NITROGEN USE AgEcon
Isik, Murat; Khanna, Madhu.
A micro-level model of farmer decision making is developed to examine the extent to which uncertainty about potential yields influences the value of site-specific technologies. The economic and environmental benefits of these technologies arise from two sources: information gathering and variable-rate nitrogen application is higher on fields with low average potential yields, high spatial variability, positively skewed potential yield distributions, responsive yield to nitrogen, and low uncertainty. Variable-rate application decreases nitrogen use by reducing the extent of overapplication. However, in the presence of uncertainty about potential yields, the incentives to overapply nitrogen irrespective of the method of application, uniform of variable...
Tipo: Journal Article Palavras-chave: Crop Production/Industries.
Ano: 2002 URL: http://purl.umn.edu/31087
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The Economic Potential of Second-Generation Biofuels: Implications for Social Welfare, Land Use and Greenhouse Gas Emissions in Illinois AgEcon
Chen, Xiaoguang; Khanna, Madhu; Onal, Hayri.
This paper develops a dynamic micro-economic land use model that maximizes social welfare and internalizes externality from greenhouse gas emissions to obtain the optimal land use allocation for traditional row crops and bioenergy crops (corn stover, miscanthus and switchgrass), the mix of cellulosic feedstocks and fuel and food prices. We use this carbon tax policy as a benchmark to compare the implications of existing biofuel policies on land use, social welfare and the environment for the 2007-2022 period. The model is operationalized using yields of perennial grasses obtained from a biophysical model, county level data on yields of traditional row crops and production costs for row crops and bioenergy crops in Illinois. We show that a carbon tax policy...
Tipo: Working or Discussion Paper Palavras-chave: Cellulosic ethanol; Land use; Social welfare; Greenhouse gas emissions; Land Economics/Use; Resource /Energy Economics and Policy; Q42; Q24.
Ano: 2009 URL: http://purl.umn.edu/49484
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How do Voluntary Pollution Reduction Programs (VPRs) Work? An Empirical Study of Links between VPRs, Environmental Management, and Environmental Performance AgEcon
Sam, Abdoul G.; Innes, Robert; Khanna, Madhu.
EPA-sponsored voluntary pollution reduction programs (VPR) have gained increased prominence in U.S. environmental policy. However, as commitments to these programs are not enforceable by design, the empirical literature has mostly focused on studying the motives for their adoption and their efficacy in curbing pollution. This paper seeks (i) to shed light on the bi-directional links between participation in a VPR and adoption of firm-structured environmental management strategies (EMS), and (ii) the joint impact of VPRs and EMS adoption on the environmental performance of participant firms. Our econometric analysis reveals that participation in the 33/50 program, helped spur the adoption of Total Quality Environment Management (TQEM), which in turn had a...
Tipo: Conference Paper or Presentation Palavras-chave: Environmental Economics and Policy.
Ano: 2006 URL: http://purl.umn.edu/21192
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Motivations for Proactive Environmental Management and Innovative Pollution Control AgEcon
Khanna, Madhu; Speir, Cameron.
Tipo: Conference Paper or Presentation Palavras-chave: Environmental Economics and Policy.
Ano: 2007 URL: http://purl.umn.edu/9788
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The Impact of Ethanol Policy on Social Welfare and GHG Emissions AgEcon
Lasco, Christine; Khanna, Madhu.
We develop a stylized model of fuel markets in an open economy to analyze the impact of ethanol policy on social welfare and greenhouse gas (GHG) emissions. The policies considered here include the $0.51 per gallon blender’s subsidy for ethanol and the import tariff of $0.54 per gallon on sugarcane ethanol. Our analysis shows that the combined subsidy and tariff policy decreases welfare by about $3.6 billion relative to a non intervention policy. Furthermore, there are no GHG mitigation benefits since GHG emissions show a slight increase (0.08%) when both policies are in place.
Tipo: Conference Paper or Presentation Palavras-chave: Environmental Economics and Policy.
Ano: 2008 URL: http://purl.umn.edu/53494
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Welfare Impacts of Alternative Public Policies for Environmental Protection in Agriculture in an Open Economy: A General Equilibrium Framework AgEcon
Taheripour, Farzad; Khanna, Madhu; Nelson, Charles.
This paper uses stylized analytical and numerical general equilibrium models to evaluate the welfare impacts of alternative policies for reducing nitrogen run-off from agricultural production in an open economy while recognizing the presence of distortionary agricultural support subsidies and factor income taxes. The alternative policies examined here are a nitrogen run-off tax, a nitrogen run-off reduction subsidy, a tax on the production of agricultural goods, a "two-part" instrument - a combination of the second and the third policies, and land retirement. The paper uses an analytical model to express the welfare impacts of each policy into several components and compares these components across alternative policies. From the analytical model the paper...
Tipo: Conference Paper or Presentation Palavras-chave: Environmental Economics and Policy.
Ano: 2005 URL: http://purl.umn.edu/19317
Registros recuperados: 36
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