The measurement of the economic effects of a changing environment can be complex and costly. This study uses a duality approach to quantify the relationship between ambient levels of ozone and economic damage on Illinois cash grain farms. Econometric estimates from producers' profit functions indicate a significant negative relationship between ozone and the levels of profit and output. These findings are consistent with results from more traditional ecosystem assessment procedures. Given the data and experimentation costs associated with traditional approaches, this study's results point to duality as a potentially powerful tool for assessing the economic effects of various environmental phenomena.
ASJC Scopus subject areas
- Economics and Econometrics
- Management, Monitoring, Policy and Law