Title: Efficiency and innovation offsets in non-point source pollution control and the role of education

Authors: Ada Wossink, Zulal Sogutlu Denaux

Addresses: Department of Agricultural and Resource Economics, North Carolina State University, Raleigh, NC 27695-8109, USA. ' Department of Marketing and Economics, Harley Langdale Jr. College of Business, Valdosta State University, Valdosta, GA 31698, USA

Abstract: This paper discusses and empirically analyses the implications of efficiency and innovation offsets for the management of non-point source pollution from agriculture. If efficiency improvements and green innovation indeed combine environmental advantages with economic advantages, these offsets would offer a free lunch adjustment to environmental regulations. A theoretical model of the farm is developed where pollution is a joint output of production, where inefficiency in production prevails and environmental innovations are available. We discuss whether education about environmentally friendlier farming practices is effective in such a context. The empirical analysis addresses pesticide use in conventional and genetically modified cotton production in North Carolina, USA. The conceptual model was implemented by means of the non-parametric directional distance function approach in Data Envelopment Analysis (DEA).

Keywords: nonpoint source pollution; agricultural extension; Porter hypothesis; environmental indicators; innovation; pesticides; genetically modified cotton; GM cotton; directional distance function; data envelopment analysis; DEA; agriculture; pollution control; education; environmentally friendly farming.

DOI: 10.1504/IJARGE.2007.012144

International Journal of Agricultural Resources, Governance and Ecology, 2007 Vol.6 No.1, pp.79 - 95

Published online: 24 Jan 2007 *

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