Pesticide taxation and the adoption of low-input cropping management practices using a hidden Markov model

Esther Devilliers (), Obafemi Philippe Koutchade () and Alain Carpentier ()
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Esther Devilliers: BETA - Bureau d'Économie Théorique et Appliquée - AgroParisTech - UNISTRA - Université de Strasbourg - Université de Haute-Alsace (UHA) - Université de Haute-Alsace (UHA) Mulhouse - Colmar - UL - Université de Lorraine - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement
Obafemi Philippe Koutchade: SMART - Structures et Marché Agricoles, Ressources et Territoires - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro Rennes Angers - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement
Alain Carpentier: SMART - Structures et Marché Agricoles, Ressources et Territoires - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro Rennes Angers - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement

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Abstract: Literature indicates that a significant reduction in farmers' pesticide use requires a change in cropping management practices (CMPs). This article investigates farmers' decision to adopt low-input CMPs and, particularly, how a standard pesticide reduction policy impacts this decision. We propose a hidden Markov model to uncover farmers' latent CMP choice, which is considered as an expected return maximizing choice. Our empirical application suggests that, for low-input CMPs adopters, non-economic factors overweight profitability concerns.Whereas for conventional farmers, the CMP choice depends on the economic context and the CMPs profitability level. Hence, pesticide reduction policies could help conventional farmers into less intensive CMPs, provided that they compensate for the revenue gap. This study contributes to the debate on the use of financial incentives to encourage reluctant farmers to adopt sustainable practices.

Keywords: Pesticide policy; Discrete choice model; Hidden Markov model; Sustainable agricultural practices (search for similar items in EconPapers)
Date: 2025
Note: View the original document on HAL open archive server: https://hal.inrae.fr/hal-05236100v1
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Published in European Review of Agricultural Economics, inPress, ⟨10.1093/erae/jbaf025⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-05236100

DOI: 10.1093/erae/jbaf025

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