Ozone pollution and farm profits in England and Wales

Neeliah, Harris; Shankar, Bhavani

doi:10.1080/00036840701858158

Cited by 3 publications

(11 citation statements)

References 9 publications

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“…Alternatively, the impact of ozone can be examined by estimating the profit function (Garcia et al, 1986). If there is an observed decrease in yields, profit-maximizing farmers are expected to adjust the variable input mix to mitigate the negative effect, which will ultimately affect variable input costs and profits (Neeliah and Shankar, 2010). In addition, when the profit function possesses the properties of monotonicity, convexity, symmetry and homogeneity, there exists a one-to-one correspondence between the concave production function and convex profit function, implying that every concave production function has a dual, which is a convex profit function, and vice versa (Lau and Yotopoulos, 1972).…”

Section: Impact Of Surface Ozonementioning

confidence: 99%

“…Therefore, the duality is useful for the research on the economic effects of certain environmental phenomena (Dixon et al, 1985). The dual approach has been applied to measure ozone damage in the USA (Dixon et al, 1984), Canada (Young and Aidun, 1993) and the UK (Neeliah and Shankar, 2010).…”

Section: Impact Of Surface Ozonementioning

confidence: 99%

“…The rice profit function is defined as:where π is the rice profit; p′, c′ and z′ denote the price of rice, variable inputs and fixed inputs, respectively; and y represents the rice output. The profit function is considered dual to the production function, and its parameters contain sufficient information to capture farmers' production behaviour at profit-maximizing points in the production possibility set (Neeliah and Shankar, 2010).…”

Section: Theoretical Frameworkmentioning

confidence: 99%

“…The dual approach has been applied to measure ozone damage in the USA (Dixon et al. , 1984), Canada (Young and Aidun, 1993) and the UK (Neeliah and Shankar, 2010).…”

Section: Introductionmentioning

confidence: 99%

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Measuring the impact of surface ozone on rice production in China: a normalized profit function approach

Ge¹,

Yang

et al. 2022

CAER

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PurposeThe purpose of this study is to investigate the impacts of surface ozone pollution on rice profit, output and variable inputs in China.Design/methodology/approachThis study estimates the rice profit function using county-level rice production data and ozone monitoring data in 2014 and 2015 to capture the impact of ozone pollution on rice profit. Then, it uses dual approach to identify the impacts of ozone on the supply of rice and the demand for variable inputs. The ozone concentration data are obtained from 1,412 monitoring stations established by the National Environmental Monitoring Centre of China.FindingsThe results show that surface ozone would significantly reduce rice profits; a 1% increase in (the daily average ozone concentration from 9 am to 4 pm) leads to a 0.1% decrease in profits. In addition, ozone has a negative impact on the levels of inputs and the supply of rice, and the elasticities of rice output, fertilizer input and labour input with respect to are −0.87, −0.86 and −0.78%, respectively. These results suggest that ozone pollution affects rice production via two channels: the direct damage on rice growth and the indirect negative impact of reducing variable inputs.Originality/valueThis study estimates the impacts of surface ozone pollution on rice profit and output, and quantifies its influence on variable inputs in China, which provides a better understanding of farmers' adaptation behaviour.

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Section: Impact Of Surface Ozonementioning

confidence: 99%

Section: Impact Of Surface Ozonementioning

confidence: 99%

Section: Theoretical Frameworkmentioning

confidence: 99%

“…The dual approach has been applied to measure ozone damage in the USA (Dixon et al. , 1984), Canada (Young and Aidun, 1993) and the UK (Neeliah and Shankar, 2010).…”

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Measuring the impact of surface ozone on rice production in China: a normalized profit function approach

Ge¹,

Yang

et al. 2022

CAER

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“…As an effect of industrial air pollution, a reduction in crops' yield and factors' productivities implies that the output elasticity of factor is changed. Neeliah and Shankar [17] estimated the production functions of cereals in England using a panel dataset, which showed that there is a significantly negative relationship between total output elasticity and tropospheric ozone concentration.…”

Section: Theoretical Hypothesismentioning

confidence: 99%

Impact of Industrial Air Pollution on Agricultural Production

Wei

Wang

2021

Atmosphere

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This paper aimed to study how industrial air pollution impacts crop yield by investigating the relationship between output and changes in factors. A translog production function was estimated in the context of stochastic frontier analysis using data collected from a field survey in the case of corn. The interaction between the factors as well as the impact of industrial air pollution on the relationship between factors was analyzed using numerical simulation, followed by the estimation of economic losses of corn yield in the polluted area. Results show that industrial air pollution causes a decrease in crop yield for two reasons. First, industrial air pollution changes the output elasticities of production factors and reduces its absolute amount. Second, industrial air pollution causes the relationship between labor and capital, labor and chemicals, capital and seeds to change from substitutable to complementary; it also resulted in an opposite result for the relationship between capital and chemicals. The paper presents a new explanation of how industrial air pollution affects agricultural production from an economic perspective.

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Is profit sharing good for the environment? Positive evidence from French firms

Fakhfakh

FitzRoy

2018

JPEO

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Purpose The purpose of this paper is to look at the effect of profit sharing (PS) on the ability of the firm to take care of the environment. Design/methodology/approach In a large cross-section of French firms, the authors find strong associations between PS and various innovations with environmental benefits. With cross-sectional data from the Community Innovation Survey and FARE, the authors estimate simultaneous equations for these effects, with endogenous PS. Findings This relationship between PS and environmental innovation is plausible, since workers benefit more than outside owners from a better local environment. To the best of the authors’ knowledge, this paper provides the first empirical evidence, so the results suggest PS supports environmental policy, in addition to its other, better known incentive benefits. Research limitations/implications Further studies, using panel data, are needed. Practical implications Financial participation may be considered as an additional tool to protect the environment. Originality/value This is the first paper looking at the impact of PS on the ability of the firm to take care of the environment. In this critical period when policy makers are searching for ways to limit global warming and protect the environment, the authors have presented here the first evidence that financial participation helps to support these policies.

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Ozone pollution and farm profits in England and Wales

Cited by 3 publications

References 9 publications

Measuring the impact of surface ozone on rice production in China: a normalized profit function approach

Measuring the impact of surface ozone on rice production in China: a normalized profit function approach

Impact of Industrial Air Pollution on Agricultural Production

Is profit sharing good for the environment? Positive evidence from French firms

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