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Neeliah, Harris and Shankar, Bhavani (2010) 'Ozone Pollution and Farm Profits in England and Wales.' Applied Economics, 42 (19). pp. 2449-2458.

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Tropospheric ozone is an air pollutant known to adversely affect crop yields across Europe. Experimental work is underway to quantify yield effects at ambient ozone levels for a number of crops. In this article, we undertake direct, farm-level evaluation of the impact of ozone by estimating a multi-output profit function using a panel dataset of cereal farms in England and Wales. A system of equations, comprising the profit function, input and output share equations is estimated using a fixed-effects seemingly unrelated regression technique, with ozone as a quasi-fixed input. Estimated parameters are used to calculate tropospheric ozone-related profit and output supply elasticities. The main findings from the profit function show that a 10% increase in average ozone levels would decrease variable profits by 1.3% and wheat output supply by 1%. These results are of a significantly lower magnitude, but qualitatively consistent with findings from similar studies carried out in North America.

Item Type: Journal Article
SOAS Departments & Centres: Departments and Subunits > Interdisciplinary Studies > Centre for Development, Environment and Policy
Legacy Departments > Faculty of Law and Social Sciences > School of Finance and Management > Centre for Development, Environment and Policy (CeDEP)
ISSN: 00036846
DOI (Digital Object Identifier):
Date Deposited: 28 Nov 2011 10:30

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