The Label Trap: Unintended Consequences of Pesticide Labeling and the Power of Nudges

Juhui Chen, Zhipeng He and Junfei Bai

Applied Economic Perspectives and Policy, 2026, vol. 48, issue 4, 1227-1243

Abstract: Presenting pesticide dosages in range formats (e.g., 10–40 g) is presumed to offer farmers flexibility to adjust dosage application based on pest or disease pressure, and thereby facilitating precise use. However, this conventional practice may unintentionally encourage pesticide overuse. Based on a lab‐in‐the‐field experiment, this study finds that approximately 65% of farmers disregard the minimum dosage when exposed to range‐based labels, anchoring instead on the upper bound. A nudge‐based label design, featuring reference points and brief explanatory cues, can significantly reduce pesticide use without restricting farmers' autonomy. These findings reveal both the hidden risks and promising potential of label‐based interventions, suggesting that thoughtfully designed labels can serve as a low‐cost, scalable policy tool for mitigating excessive chemical use problem in agriculture.

Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:wly:apecpp:v:48:y:2026:i:4:p:1227-1243

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