Modeling fertilizer externalities around Palo Verde National Park,Costa Rica |
| |
| Authors: | Rodrigo A. Arriagada Erin O. Sills Subhrendu K. Pattanayak Frederick W. Cubbage Eugenio González |
| |
| Affiliation: | 1. Department of Agricultural Economics, Pontificia Universidad Católica de Chile, Casilla 306, Correo 22, Santiago, Chile and ecoSERVICES Group, School of Life Sciences, Arizona State University, Tempe, AZ 85287, USA;2. Department of Forestry and Environmental Resources, North Carolina State University, Raleigh, NC 27695, USA;3. Sanford School of Public Policy & Nicholas School of the Environment, Duke University, Durham, NC 27708, USA;4. Texas A&M University Research and Education Center, Apartado 80‐4417, Fortuna, San Carlos, Costa Rica |
| |
| Abstract: | Irrigated rice farming in Costa Rica involves use of agrochemicals that pollute important wetlands ecosystems, such as the Palo Verde National Park in the northeastern province of Guanacaste. We characterize rice farming in this region, apply duality theory to estimate conditional factor demand for fertilizer, and then simulate the impacts of alternative policies on fertilizer use. Using a normalized profit function, we also estimate policy impacts on farmer profits. As expected, prices of rice seeds and fertilizer significantly affect use of fertilizer. Price incentives or taxes could encourage farming practices that reduce the threat to downstream ecosystems. |
| |
| Keywords: | D13 Q12 Q18 Agriculture Rice Conditional factor demands Normalized profit function |
|
|
