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A Nonlinear Offset Program to Reduce Nitrous Oxide Emissions Induced by Excessive Nitrogen Application AgEcon
Rosas, Francisco; Babcock, Bruce A.; Hayes, Dermot J..
On average, U.S. farmers choose to apply nitrogen fertilizer at a rate that exceeds the ex post agronomically optimal rate. The technology underlying the yield response to nitrogen rewards producers who over apply in years when rainfall is excessive. The overapplication of nutrients has negative environmental consequences because the nitrogen that is not taken up by the plant will typically volatilize causing N2O emissions, or leach causing water pollution. We present a nonlinear offset program that induces farmers to reduce their nitrogen applications to the level that will be consumed by the plant in a typical year and, as a result, reduce N2O emissions from agriculture. The offset program is nonlinear because of the nonlinear relationship between N2O...
Tipo: Working or Discussion Paper Palavras-chave: Carbon offsets; Nitrogen fertilizer; Nitrous oxide; Pollution; Uncertainty; Crop Production/Industries; Environmental Economics and Policy; Production Economics; Risk and Uncertainty.
Ano: 2011 URL: http://purl.umn.edu/103914
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Does Duality Theory Hold in Practice? A Monte Carlo Analysis for U.S. Agriculture AgEcon
Rosas, Francisco; Lence, Sergio H..
The Neoclassical theory of production establishes a dual relationship between the profit value function of a competitive firm and its underlying production technology. This relationship, usually referred to as the duality theory, has been widely used in empirical work to estimate production parameters without the requirement of explicitly specifying the technology. We analyze the ability of this approach to recover the underlying production parameters and its effects on estimated elasticities and scale economies measurements, when data available for estimation features typical realistic problems. We design alternative scenarios and compute the data generating process by Monte Carlo simulations, so as to know the true technology parameters as well as to...
Tipo: Conference Paper or Presentation Palavras-chave: Duality theory; Firm’s heterogeneity; Measurement error; Data aggregation; Omitted variables; Endogeneity; Uncertainty; Monte Carlo simulations.; Crop Production/Industries; Production Economics; Risk and Uncertainty; Q12; D22; D81.
Ano: 2011 URL: http://purl.umn.edu/103911
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Greenhouse Gas and Nitrogen Fertilizer Scenarios for U.S. Agriculture and Global Biofuels AgEcon
Elobeid, Amani E.; Carriquiry, Miguel A.; Fabiosa, Jacinto F.; Mulik, Kranti; Hayes, Dermot J.; Babcock, Bruce A.; Dumortier, Jerome; Rosas, Francisco.
This analysis uses the 2011 FAPRI-CARD (Food and Agricultural Policy Research Institute–Center for Agricultural and Rural Development) baseline to evaluate the impact of four alternative scenarios on U.S. and world agricultural markets, as well as on world fertilizer use and world agricultural greenhouse gas emissions. A key assumption in the 2011 baseline is that ethanol support policies disappear in 2012. The baseline also assumes that existing biofuel mandates remain in place and are binding. Two of the scenarios are adverse supply shocks, the first being a 10% increase in the price of nitrogen fertilizer in the United States, and the second, a reversion of cropland into forestland. The third scenario examines how lower energy prices would impact world...
Tipo: Working or Discussion Paper Palavras-chave: Afforestation; Energy price; Ethanol tax credit; Fertilizer; Partial equilibrium model; Policy analysis; Agricultural and Food Policy; Demand and Price Analysis; Resource /Energy Economics and Policy.
Ano: 2011 URL: http://purl.umn.edu/107043
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World Fertilizer Model—The WorldNPK Model AgEcon
Rosas, Francisco.
We introduce a world fertilizers model that is capable of producing fertilizer demand projections by crop, by country, by macronutrients, and by year. For each crop, the most relevant countries in terms of production, consumption, or trade are explicitly modeled. The remaining countries are modeled, for each crop, within a regional aggregate. The nutrient coverage includes nitrogen (N), phosphorous (P), and potassium (K). In this report we present the data and procedures used to set up the model as well as the assumptions made. The fertilizer model interacts with the yield equations of the FAPRI-ISU model (Food and Agricultural Policy Research Institute at Iowa State University), and by means of a set of production elasticities, projects each nutrient’s...
Tipo: Working or Discussion Paper Palavras-chave: Agriculture; Fertilizer; Nitrogen; Phosphorous; Policy analysis; Potassium; Projections; Crop Production/Industries; Demand and Price Analysis; Production Economics.
Ano: 2011 URL: http://purl.umn.edu/103223
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Yield and Area Elasticities. A Cost Function Approach with Uncertainty AgEcon
Rosas, Francisco; Hayes, Dermot J..
This paper develops a method to jointly estimate crop yield elasticities and area elasticities with respect to output prices based on a theoretically consistent model. The model uses a duality theory approach for the multi-output and multi-input firm, and introduces uncertainty in the level of target output which conditions the cost minimization problem, in the output prices and in the conditional input demand functions. The underlying production technology is conditioned on fixed inputs, both allocatable and non-allocatable. Up to our knowledge, there have been no theoretical developments of this type of models for multioutput technologies. Our approach is also novel because no previous model of this type has introduced the effects of allocatable fixed...
Tipo: Conference Paper or Presentation Palavras-chave: Yield elasticities; Area elasticities; Duality theory; Cost function; Uncertainty; Production Economics.
Ano: 2010 URL: http://purl.umn.edu/61345
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