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A DYNAMIC ANALYSIS OF THE IMPACT OF WATER QUALITY POLICIES ON IRRIGATION INVESTMENT AND CROP CHOICE DECISIONS AgEcon
Wu, JunJie; Mapp, Harry P., Jr.; Bernardo, Daniel J..
A dynamic model is developed to analyze farmers' irrigation investment and crop choice decisions under alternative water quality protection policies. The model is applied to an empirical example in the Oklahoma High Plains. The choices of crops and irrigation systems and the resulting levels of irrigation, income, and nitrogen runoff and percolation are simulated over a ten-year period. An effluent tax on nitrogen runoff and percolation is shown to be effective in reducing nitrate pollution. The efficacy of cost sharing in adopting modern irrigation technologies and restrictions on irrigation water use depends on soil type. A tax on nitrogen use is shown to be the least effective policy.
Tipo: Journal Article Palavras-chave: Crop selection; Dynamic optimization; Irrigation investment; Water quality; Crop Production/Industries.
Ano: 1994 URL: http://purl.umn.edu/15167
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A Stochastic-Dynamic Model of Costly Reversible Technology Adoption AgEcon
Baerenklau, Kenneth A.; Knapp, Keith C..
We develop a stochastic-dynamic model of technology adoption that imposes fewer restrictions on behavior than do previous studies of similar decision problems. Like these previous studies, our model is forward-looking and can be used to demonstrate the additional "hurdle rate" that must be met before adoption will take place when the future state of the world is uncertain. Unlike these previous studies, our approach does not impose the untenable assumptions that investment in a new technology is irreversible or that technologies have unlimited useful lifetimes. Rather, we address the more reasonable situation of costly reversibility and limited lifetimes. Our solution method utilizes Bellman's equation and standard dynamic programming techniques....
Tipo: Conference Paper or Presentation Palavras-chave: Dynamic optimization; Irrigation; Reversible; Technology adoption; Water; Research and Development/Tech Change/Emerging Technologies.
Ano: 2005 URL: http://purl.umn.edu/19156
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An Optimal Control Framework to Address the Relationship between Water Resource Management and Water-Borne Health Impacts: Focus on the Texas Lower Rio Grande Valley AgEcon
Leidner, Andrew J.; Lacewell, Ronald D.; Rister, M. Edward; Sturdivant, Allen W..
The objective of this study is develop a theoretical model that can evaluate two types of public health expenditures on water-borne health risks: water-related municipal services, an ex ante preventative measure against water-borne contamination, and medical treatment, an ex post treatment of the water-borne pollutant’s harmful effects on human health. The modeled community can allocate resources in either centralized-municipal water-services, point-of-use water-services, or medical intervention, with expenditures subject to a budget constraint. The movement of a water-borne illness through the community is modeled with a susceptible-infected-susceptible (SIS) disease framework. An optimization framework is developed, including a statement of the...
Tipo: Conference Paper or Presentation Palavras-chave: Water; Public health; Rural development; Dynamic optimization; Community/Rural/Urban Development; Resource /Energy Economics and Policy.
Ano: 2011 URL: http://purl.umn.edu/98806
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Aquifer Depletion and the Cost of Water Conservation: The Southern High Plains of Texas Case AgEcon
Wheeler, Erin A.; Segarra, Eduardo; Johnson, Phillip N.; Willis, David B.; Johnson, Jeffrey W..
Irrigated agriculture has played a vital role in the development and growth of the Great Plains Region of the United States. The primary source of water for irrigation in this region is the Ogallala Aquifer. The Southern portion of the Ogallala Aquifer is considered exhaustible due to the low level of recharge relative to the quantities of water pumped. Analysis and evaluation of water conservation policies which could extend the economic life of the Ogallala Aquifer in the Southern High Plains of Texas and Eastern New Mexico, and which could contribute to maintaining the viability of the regional economy is important. This study evaluates the impacts of water conservation policies which limit drawdown of the Ogallala Aquifer. County level dynamic...
Tipo: Conference Paper or Presentation Palavras-chave: Water conservation; Water policy evaluation; Aquifer management; Dynamic optimization; Resource /Energy Economics and Policy.
Ano: 2006 URL: http://purl.umn.edu/25410
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Bayesian Learning and the Regulation of Greenhouse Gas Emissions AgEcon
Karp, Larry S.; Zhang, Jiangfeng.
We study the importance of anticipated learning - about both environmental damages and abatement costs - in determining the level and the method of controlling greenhouse gas emissions. We also compare active learning, passive learning, and parameter uncertainty without learning. Current beliefs about damages and abatement costs have an important effect on the optimal level of emissions, However, the optimal level of emissions is not sensitive either to the possibility of learning about damages. or to the type of learning (active or passive), Taxes dominate quotas, but by a small margin.
Tipo: Working or Discussion Paper Palavras-chave: Climate change; Uncertainty; Bayesian learning; Asymmetric information; Choice of instruments; Dynamic optimization; Environmental Economics and Policy; Research Methods/ Statistical Methods; Cll; C6l; D8; H2l; Q28.
Ano: 2001 URL: http://purl.umn.edu/6214
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Comparing the Cost-Effectiveness of Water Conservation Policies in a Depleting Aquifer: A Dynamic Analysis of the Kansas High Plains AgEcon
Ding, Ya; Peterson, Jeffrey M..
This research analyzes two groundwater conservation policies in the Kansas High Plains located within the Ogallala aquifer: 1) cost-share assistance to increase irrigation efficiency; and 2) incentive payments to convert irrigated crop production to dryland crop production. To compare the cost-effectiveness of these two policies, a dynamic model simulated a representative irrigator’s optimal technology choice, crop selection, and irrigation water use over time. The results suggest that the overall water-saving effectiveness can be improved when different policy tools are considered under different conditions. High prevailing crop prices greatly reduce irrigators’ incentive to give up irrigation and therefore cause low enrollment and ineffectiveness of the...
Tipo: Article Palavras-chave: Cost-share program; Incentive payments; Ogallala aquifer; Dynamic optimization; Groundwater conservation; Environmental Economics and Policy; Q30; Q32; Q38.
Ano: 2012 URL: http://purl.umn.edu/123781
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Dynamic Feedback between Surface and Groundwater Systems: Implications for Conjunctive Management AgEcon
Cobourn, Kelly M..
A key feature of hydrologically connected surface and groundwater stocks is the two-way exchange of water between the systems. Increasing water scarcity, particularly in arid environments, has spurred debate on how to coordinate management of the two resources. In this paper, I present a model that describes the dynamic feedback loop between surface and groundwater systems when economic agents withdraw water from both for use in production. I use the model to describe optimal water extraction from both stocks and to evaluate how a conjunctive management policy shifts welfare between surface and groundwater user groups. Finally, I explore the importance of accounting for two-way feedback between the two stocks, when it exists, in estimating the benefits to...
Tipo: Conference Paper or Presentation Palavras-chave: Groundwater; Conjunctive management; Dynamic optimization; Gisser-Sanchez effect; Resource /Energy Economics and Policy.
Ano: 2011 URL: http://purl.umn.edu/103893
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DYNAMICS AND UNCERTAINTY IN ENVIRONMENTAL AND NATURAL RESOURCE MANAGEMENT UNDER SCARCITY: THE CASE OF IRRIGATION AgEcon
Bontemps, Christophe; Couture, Stephane.
The objective of this paper is to study the problem of management of irrigation water. We analyse farmers' economic rules of tactical irrigation scheduling in a certain or uncertain environment under water scarcity. The optimal plans depend on uncertain weather conditions and expectations. We develop a dynamic economic model of irrigation water applications under certain or uncertain weather conditions and in the context of a limited total quantity of water. We program this economic model, introducing the agronomic model EPIC, which is used to obtain information on the crop yield. The model is used to explain the optimal irrigation management plan of corn in the area of Toulouse (France). This model improves water management and leads to substantial...
Tipo: Conference Paper or Presentation Palavras-chave: Dynamic optimization; Irrigation management; Agroeconomic modeling; Uncertainty; Research Methods/ Statistical Methods; Resource /Energy Economics and Policy; Risk and Uncertainty.
Ano: 1999 URL: http://purl.umn.edu/21504
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Effects of Nutrient Restrictions on Confined Animal Facilities: Insights from a Structural Model AgEcon
Baerenklau, Kenneth A.; Nergis, Nermin; Schwabe, Kurt A..
Nutrient emissions from animal feeding operations continue to degrade water and air quality. New regulations will limit the amounts of nutrients that can be locally applied to land. In this article, a structural-dynamic model of a livestock-crop operation is calibrated with data from a representative farm and is used to predict the effects of nitrogen regulations. Policy simulations clarify the importance of dynamic elements and demonstrate three main results: (1) cost estimates are relatively high; (2) cross-media pollution effects are potentially large; and (3) improved input management appears most promising for reducing both emissions and waste management costs. Implications for policy and future research are discussed.
Tipo: Conference Paper or Presentation Palavras-chave: Ammonia; Animal feeding operation; Cross-media pollution; Dairy; Dynamic optimization; Groundwater; Nitrate; Nitrogen; Nutrient management plan; Livestock Production/Industries.
Ano: 2007 URL: http://purl.umn.edu/10253
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FEASIBILITY OF INTEGRATING SHEEP AND CROPS WITH SMALLHOLDER RUBBER PRODUCTION SYSTEMS IN INDONESIA AgEcon
Deaton, Brady J.; San, Nu Nu.
Diversified production systems are considered important tools for stabilizing the income of smallholder rubber producers in Indonesia. Based on empirical data collected from smallholder rubber producers in the Nucleus Estate Smallholder (NES) development project, estimations were made of the economic feasibility of integrating sheep and selected crops into smallholder rubber production plantations. The dynamic optimization procedure is used as an evaluation technique. This study finds that integration of sheep and crops into smallholder rubber production is economically feasible, particularly for those who utilize family labor for hand harvesting grass and grazing sheep. Integrating sheep alone increases the net present value of future income by 20%....
Tipo: Journal Article Palavras-chave: Bioeconomic model; Diversification; Dynamic optimization; Indonesia; Rubber; Sheep; Smallholder; Farm Management.
Ano: 1999 URL: http://purl.umn.edu/14727
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Intertemporal Risk Management Decisions of Farmers under Preference, Market, and Policy Dynamics AgEcon
Wang, H. Holly; Du, Wen.
This paper adapts a generalized expected utility (GEU) maximization model (Epstein and Zin, 1989 and 1991) to examine the intertemporal risk management of wheat producers in the Pacific Northwest. Optimization results based on simulated data indicate the feasibility of the GEU optimization as a modeling framework. It further extends the GEU model by incorporating a welfare measure, the certainty equivalent, to investigate the impacts of U.S. government programs and market institutions on farmers' risk management decisions and welfare. A comparison between the GEU and other expected utility models further implies GEU has the advantage of specifying farmers' intertemporal preferences separately and completely. Impact analysis results imply that farmers'...
Tipo: Conference Paper or Presentation Palavras-chave: Generalized expected utility; Risk management; Multi-period production; Dynamic optimization; Intertemporal preference; Market institution; Government payments; Risk and Uncertainty; Q14; D9; C61.
Ano: 2005 URL: http://purl.umn.edu/19526
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Optimal Control of Spreading Biological Invasions: For How Long Should We Apply the Brake? AgEcon
Carrasco, Luis Roman; MacLeod, Alan; Knight, John D.; Baker, Richard; Mumford, John D..
Identifying the optimal switching point between different invasive alien species (IAS) management policies is a very complex task and policy makers are in need of modelling tools to assist them. In this paper we develop an optimal control bioeconomic model to estimate the type of optimal policy and switching point of control efforts against a spreading IAS. We apply the models to the case study of Colorado potato beetle in the UK. The results demonstrate that eradication is optimal for small initial sizes of invasion at discovery. High capacity of the agency to reduce spread velocity for several years leads to smaller total overall costs of invasion and makes eradication optimal for larger sizes of initial invasion. In many cases, it is optimal to switch...
Tipo: Conference Paper or Presentation Palavras-chave: Barrier zone; Biosecurity; Dynamic optimization; Eradication; Leptinotarsa decemlineata; Pest risk analysis; Reaction-diffusion.; Risk and Uncertainty; Q1; Q28; Q57.
Ano: 2009 URL: http://purl.umn.edu/50940
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Portfolio Analysis for Optimal Seafood Product Diversification and Resource Management AgEcon
Sylvia, Gilbert; Tuininga, Chris; Larkin, Sherry L..
Future harvests from commercial fish stocks are unlikely to increase substantially due to biological and regulatory constraints. Developing alternative sets of processed seafood products is one strategy for increasing welfare while managing the risks inherent in a variable and renewable natural resource. To quantify the risk-benefit tradeoffs of alternative strategies, a portfolio decision framework is embedded into a multi-period bioeconomic model. The model is used to generate an efficient portfolio frontier to estimate possible rent dissipation from status quo management. Frontiers are also generated for seafood processors and brokers. Implications for the different industry agents are discussed.
Tipo: Journal Article Palavras-chave: Bioeconomic analysis; Dynamic optimization; Markowitz; Pacific whiting; Portfolio analysis; Resource management; Seafood processing; Resource /Energy Economics and Policy.
Ano: 2003 URL: http://purl.umn.edu/31092
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Sequencing Renewables: Groundwater, Recycled Water, and Desalination AgEcon
Roumasset, James A.; Wada, Christopher.
Optimal recycling of minerals can be thought of as an integral part of the theory of the mine. In this paper, we consider the role that wastewater recycling plays in the optimal extraction of groundwater, a renewable resource. We develop a two-sector dynamic optimization model to solve for the optimal trajectories of groundwater extraction and water recycling. For the case of spatially increasing recycling costs, recycled water serves as a supplemental resource in transition to the steady state. For constant unit recycling cost, recycled wastewater is eventually used as a sector-specific backstop for agricultural users, while desalination supplements household groundwater in the steady state. In both cases, recycling water increases welfare by shifting...
Tipo: Conference Paper or Presentation Palavras-chave: Renewable resources; Dynamic optimization; Groundwater allocation; Wastewater reuse; Recycling; Reclamation; Water quality; Environmental Economics and Policy; Resource /Energy Economics and Policy; Q25; Q28; C6.
Ano: 2011 URL: http://purl.umn.edu/103753
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The Institutional Support of Agricultural Loans and its Role in Czech Agriculture AgEcon
Cechura, Lukas.
The paper deals with the analysis of the institutional support of agricultural loans and its role in Czech agriculture based on the dynamic optimal model. The dynamic optimization problem is solved by the Lagrange method. The application of the theoretical model shows that the lower is the interest rate paid by the farmer the lower is the optimal consumption and consequently the farmer is willing to employ higher part of the capital in the production. Thus, the initial capital is more effectively employed. The time series analysis shows that the SGAFF’s activities significantly support the farmer’s investments. In spite of the problems in the setting of the SGAFF’s policy, the role of the SGAFF in financing of agricultural activities can be regarded to be...
Tipo: Conference Paper or Presentation Palavras-chave: SGAFF (Supporting and Guarantee Agricultural and Forestry Fund); Dynamic optimization; Agricultural output; Investments.; Agricultural Finance.
Ano: 2007 URL: http://purl.umn.edu/7815
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The Optimal Intertemporal Management of the Soil and Phosphorus and the Equilibrium in Economic and Biophysical Models AgEcon
Goetz, Renan-Ulrich; Keusch, Alois.
The paper proposes the use of meta models to determine the optimal intertemporal management of soil and phosphorus losses from agricultural land. This approach allows finding a equilibrium of the economic and biophysical system simultaneously. In contrast to the existing literature the model takes account of nonlinear relationships and of a large number of agricultural activities. The mathematical problems arising from this complex setup are addressed and the model is solved numerically. The results show that the second best policy in form of soil protection scores is highly inefficient, while another second best policy in form of land-use taxes is nearly as efficient as the first best policy.
Tipo: Conference Paper or Presentation Palavras-chave: Soil erosion; Phosphorus runoffs; Land-use tax; Soil protection scores; Dynamic optimization; Resource /Energy Economics and Policy.
Ano: 2002 URL: http://purl.umn.edu/24783
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