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Examining Quantity and Quality Effects of Restricting Nitrogen Applications to Feedgrains
Author(s) -
Atwood Joseph A.,
Helmers Glenn A.
Publication year - 1998
Publication title -
american journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.949
H-Index - 111
eISSN - 1467-8276
pISSN - 0002-9092
DOI - 10.2307/1244509
Subject(s) - quality (philosophy) , rationing , yield (engineering) , differential (mechanical device) , differential effects , economics , nitrogen , environmental economics , natural resource economics , environmental science , chemistry , engineering , biology , health care , philosophy , materials science , organic chemistry , epistemology , aerospace engineering , metallurgy , economic growth , endocrinology
Restricting the timing and level of nitrogen applications has been proposed as a response to nitrate contamination in Nebraska. Agronomic research indicates that reducing available nitrogen reduces both the yield (quantity) and protein content (quality) of feedgrains. A differential system is developed to estimate the social costs of regulation while simultaneously considering both quantity and quality effects of a tax and/or a rationing policy. The results indicate that ignoring the quality effects of a proposed policy can lead to erroneous estimates of changes in factor use, output responses, and the social costs of regulation.