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Lookup NU author(s): Dr Francisco ArealORCiD
This is the authors' accepted manuscript of an article that has been published in its final definitive form by Wiley-Blackwell Publishing Ltd., 2018.
For re-use rights please refer to the publisher's terms and conditions.
Distance functions are increasingly being augmented, with environmental goods treated as conventional outputs. A common approach to evaluate the opportunity cost of providing an environmental good is the exploitation of the distance function's dual relationship to the value function. This implies that the opportunity cost is assumed to be non‐negative. This approach also requires a convex technology set. Focusing on crop diversification for a balanced sample of 44 cereal farms in the East of England for the years 2007–2013, this paper develops a novel opportunity cost measure that does not depend on these strong assumptions. We find that the opportunity cost of crop diversification is negative for most farms
Author(s): Ang FKG, Mortimer SR, Areal FJ, Tiffin R
Publication type: Article
Publication status: Published
Journal: Journal of Agricultural Economics
Year: 2018
Volume: 69
Issue: 3
Pages: 794-814
Print publication date: 01/09/2018
Online publication date: 16/05/2018
Acceptance date: 01/01/2018
Date deposited: 29/04/2019
ISSN (print): 0021-857X
ISSN (electronic): 1477-9552
Publisher: Wiley-Blackwell Publishing Ltd.
URL: https://doi.org/10.1111/1477-9552.12272
DOI: 10.1111/1477-9552.12272
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