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Economic effects of ozone on US agriculture: a sector modeling approach

Thesis/Dissertation ·
OSTI ID:5812894
Tropospheric ozone is a pollutant that has detrimental effects on crop yields. The level of ambient ozone can be reduced by environmental policy changes and enforcement. The purpose of this study was to estimate the welfare effects of such changes in ambient ozone using recently available plant response data and an economically consistent approach. A 25% reduction in ambient ozone was estimated to increase total welfare by approximately $1.7 billion. About 40% of the benefits accrue to producers, 25% to domestic consumers and 35% to foreign consumers. These benefits estimates do not consider compliance costs. A variety of changes in ambient ozone are considered for ranges of crop sensitivity. The analysis was conducted using a mathematical-programming sector model of the US agriculture. The model is a long-run equilibrium model encompassing regional production of the major crops and livestock products, as well as processing and export activities. Proposals for improving the performance of sector models were examined. Alternative methods for incorporating aggregate response assumptions were found to have little effect on estimates of total welfare changes but had important consequences for the distributional effects between producers and consumers.
Research Organization:
Oregon State Univ., Corvallis (USA)
OSTI ID:
5812894
Country of Publication:
United States
Language:
English