Use of positive mathematical programming invalidates the application of the <i><scp>NZFARM</scp></i> model

This paper proposes a new information-based method to calibrate the shadow values of constraints in Positive Mathematical Programming models of agricultural supply. Shadow values are chosen so as to minimise model deviation from observed activity-and input-specific expenditures, enhancing the informational basis of the calibrated model. We provide an application to nitrogen policy in California using an agronomically and economically calibrated regionalised model. Regional shadow values of water are generally much higher than those suggested by the traditional method of Howitt, R. E. (1995b. American Journal of Agricultural Economics 77(2): 329-342). The implied statewide elasticity of demand for nitrogen is minimally affected by the choice of shadow values, however predicted environmental outcomes differ as this choice affects the distribution of nitrogen across regions and crops.

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Improving Groundwater Management for Indian Agriculture: Assessing Tradeoffs Across Policy Instruments

Msangi

Cline

2016

Water Econs. Policy

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Despite efforts to reform management of water resources, groundwater levels have continued to decline steadily in key aquifers across India, leading to serious environmental concerns and impacts. While policy makers have looked to efforts aimed at improving the efficiency of field-level irrigation and strengthening ownership and property rights in local resource management, hydrologists have asserted that more direct control of consumptive use patterns of water is needed. In this paper, we illustrate the divergence between current groundwater usage patterns and an optimal path, in which the groundwater levels are stabilized with better demand-side management. The paper assesses the tradeoffs embedded in alternative policy instruments that are aimed at modifying the groundwater pumping behavior of agricultural water users. The challenges of regulating smallholder agricultural water users are shown to be relevant in determining which instrument might have the best chance of slowing the depletion of groundwater resources in the hard-rock aquifers of India, and promoting the long-run sustainability of this critical natural resource.

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Use of positive mathematical programming invalidates the application of the NZFARM model

Cited by 3 publications

References 7 publications

Enhancing Productivity and Market Access for Key Staples in the EAC Region: An Economic Analysis of Biophysical and Market Potential

Enhancing Productivity and Market Access for Key Staples in the EAC Region: An Economic Analysis of Biophysical and Market Potential

Calibration of shadow values in constrained optimisation models of agricultural supply

Improving Groundwater Management for Indian Agriculture: Assessing Tradeoffs Across Policy Instruments

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