Assessing the Economic Impacts of Pesticide Regulations

Uwe Schneider (), Livia Rasche and Bruce McCarl
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Livia Rasche: Research Unit Sustainability and Global Change, Department of Geosciences, Center for Earth System Research and Sustainability, University of Hamburg, 20144 Hamburg, Germany

Agriculture, 2018, vol. 8, issue 4, 1-13

Abstract: Economic impacts of pesticide regulations are assessed using five alternative methodologies. The regulations include crop supply-enhancing eradication programs and crop supply-decreasing pesticide bans. Alternative assessment methodologies differ regarding assumptions about market price and crop acreage adjustments. Results show that market and producer adjustments substantially impact conclusions about winners and losers from regulations, and estimated welfare effects can differ widely between the different methodologies. For small technological changes such as the hypothetical pendimethalin regulation, farm budgeting and sector modeling yield similar estimates. For more severe technological changes—like the boll weevil eradication program—simple budgeting approaches lead to a substantial bias.

Keywords: pest control; pesticide ban; insect eradication; farm income; agricultural sector analysis (search for similar items in EconPapers)
JEL-codes: Q1 Q10 Q11 Q12 Q13 Q14 Q15 Q16 Q17 Q18 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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