Factor Input Demand Subject to Economic and Environmental Risk: The Case of Nitrogen Fertilizer in Corn Production

Nitrogen (N) fertilizer demand in relation to economic and environmental risks associated with N-fertilizer management are examined. Both nominal and environmental damage-adjusted net returns distributions are evaluated using stochastic dominance analysis. Results suggest that, in the absence of environmental risk, N demand becomes more elastic as farmers become more risk averse. When environmental risk is introduced to the decision-making process, N demand becomes even more elastic.


Issue Date:
1993-12
Publication Type:
Working or Discussion Paper
Record Identifier:
http://ageconsearch.umn.edu/record/118154
PURL Identifier:
http://purl.umn.edu/118154
Total Pages:
26
Series Statement:
Staff Paper
94-5




 Record created 2017-04-01, last modified 2018-01-22

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