Abstract
AbstractThis paper develops a novel empirical framework for estimating individual emission levels in a nonpoint source (NPS) pollution problem. For doing so, we build upon the sequential GME model suggested by Kaplan et al. using a specific theoretical structure describing both crop production technology and nature's residual generating mechanism in line with the multiple production relations model suggested by Murty et al. Our empirical model is fitted into a parametric stochastic framework and it is applied to a nitrogen leaching problem in a sample of 257 small‐scale greenhouse farms in Crete, Greece during the 2005–2006 cropping period. Empirical results indicate a great dispersion of individual nitrate leaching levels, which are associated with low‐ and high‐profit margins. Improvements in nitrate leaching and fertilizer application efficiency can decrease significantly individual leaching levels providing a more cost effective way to improve water quality in the area.
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