On increasing returns and discrete choice: integrating production ecological principles in economic analysis of crop management

摘要: In contrast to conventional inputs (land, labor and capital) pesticides nutrients act indirectly on output. This paper develops a model of pesticide nutrient response based the biological physical processes that govern agricultural ecosystems. The main implications for are marginal returns an individual crop depend three state variables (potential yield level, growth conditions pest incidence) relative curvature control damage functions. properties functional forms commonly used in literature imply increasing input which reduces decision binary one. When several methods available, choice set consists discrete options site specific because interaction with prevailing growing conditions. analogous conclusions hold when considered jointly. To illustrate these results management two case studies presented. first study explores economic environmental performance alternative farming systems, second assesses levy system as part future policy.