Crop substitution in the estimation of economic benefits due to ozone reduction

Prior estimates of economic loss from ozone damage to food crops have not allowed for farmer substitution in inputs—and particularly have not allowed for acreage shifts between crops—in response to yield changes. This is a potentially serious problem since benefits from air pollution control legislation may also be estimated without allowing for this direct substitution. This study explores how much acreage shifting might occur between corn, soybeans, and wheat if ozone were reduced to background levels, and how such substitution might affect the estimation of benefits from ozone reduction.