Technology and the Environment David Zilberman On Interdisciplinary Research The notion of multidisciplinarity has various interpretations.
The notion of multidisciplinarity has various interpretations.
Irrigation increases crop yields. The 17% of land that is irrigated produces 40% of the global food.
Corn yield per acre has not changed for close to 100 years, and then grew by 2% annually-example of gain of biological innovation
Before the externality is regulated more input is used with the dirtier technology. The modern technology is saving input and increasing yield gain may not justify extra cost.
Polluting technology.It sued more input before
May use less after tax
W+marginal externality traditional
W+marginal externality tmodernl
Another case no pollution tax P=2.W=4. V=0 K0=0,K1=20
X0=6,X1=4 Y0=21 YI=24 modern technology increases yield and saves water
The operational profits gain from adoption is 14
Adoption is not worth while 20>14
Profits increase with quality
Below a threshold level there is no operation
Adoption occurs at
Low qualities between
qm and qc
PR0 =Profit traditional technology
PR1 =Profit modern technology
L = size of farm
a = saving per acre
P = cost of tractor
Adopt if P < aL
L = P/a critical size.
Critical size declines because P declines. As a result of learning by doing, a increases as a result of learning by using.
Adopters firms that are larger than the threshold
-Adoption is influenced by provision of better information, improved pricing, and financial terms of investment.
-Adoption of some technologies have network externality benefits.
Higher income individuals may be less risk averse.