Risk Aversion And Pesticide Use: Further Insights From Prospect Theory

Alain Carpentier

No 261265, 2017 International Congress, August 28-September 1, 2017, Parma, Italy from European Association of Agricultural Economists

Abstract: Prospect Theory suggests that farmers’ attitudes toward pest risks depend on the situation they refer to when facing crop protection decisions. Farmers referring to the ‘protected crop’ situation may implement self-insurance pesticide treatments while farmers referring to the ‘unprotected crop’ situation are risk neutral toward pest risks. Importantly, farmers are more likely to refer to the ‘protected crop’ situation when pesticides are relatively inexpensive. This in turn leads to original results related to the regulation of agricultural pesticide uses. For instance, pesticide taxes would not only impact pesticide expected profitability but also farmers’ attitude toward pest risks.

Keywords: Environmental; Economics; and; Policy (search for similar items in EconPapers)
Pages: 13
Date: 2017-08-28
New Economics Papers: this item is included in nep-agr, nep-env, nep-ias and nep-upt
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://ageconsearch.umn.edu/record/261265/files/C ... 0Pesticide%20Use.pdf (application/pdf)
https://ageconsearch.umn.edu/record/261265/files/C ... e.pdf?subformat=pdfa (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:eaae17:261265

DOI: 10.22004/ag.econ.261265

Access Statistics for this paper

More papers in 2017 International Congress, August 28-September 1, 2017, Parma, Italy from European Association of Agricultural Economists Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().