Demand for fertilizer in developing countries has expanded at a rapid rate over the past forty years. The relative scarcity of agricultural land has been a major underlying cause of this expansion in demand. More proximate causes include the development of complementary Green Revolution...

The distinctive nature of environmental quality problems in agriculture — an industry based on the extraction of highly variable natural resources under stochastic conditions — has important implications for policy design. First, we examine the source of environmental quality problems and...