Agricultural Economics Department


Date of this Version

August 1999


Selected Paper, American Agricultural Economics Association Meetings, Nashville, Tennessee, August 8-11, 1999. Copyright 1999 by Saleem Shaik and Glenn A. Helmers. Used by permission.


This paper addresses the issue of the shadow price of environmental bads treated as an undesirable output (normal input) with weak (strong) disposability in a two-stage estimation. Nebraska agriculture sector time series data is spread over 1936-94. Results indicate the difference in the price due to the disposability property.