Producer Welfare Consequences of Regulating Chemical Residues on Agricultural Crops: Maleic Hydrazide and Flue Cured Tobacco

William Foster and Bruce Babcock

Staff General Research Papers Archive from Iowa State University, Department of Economics

Abstract: A procedure is presented to calculate welfare consequences of chemical regulation from demand curves when input applications are unobserved, and is applied to maleic hydrazide and tobacco. The relationship between chemical residues and weather variables and prices is estimated, and from this the authors derive demand curves using an application-residue relationship estimated using research station data. Chemical price levels required to attain given regulatory goals are estimated. Yearly producer losses from a chemical ban range from $6 million to $14 million, two to five times greater than from a tax achieving a 95 percent assurance rate of residues falling below a proposed standard.

Date: 1991-01-01
References: Add references at CitEc
Citations: View citations in EconPapers (4)

Published in American Journal of Agricultural Economics, January 1991, vol. 73, pp. 1224-1232

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:isu:genres:10590

Access Statistics for this paper

More papers in Staff General Research Papers Archive from Iowa State University, Department of Economics Iowa State University, Dept. of Economics, 260 Heady Hall, Ames, IA 50011-1070. Contact information at EDIRC.
Bibliographic data for series maintained by Curtis Balmer ().