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Simulating the Market and Environmental Impacts of French Pesticide Policies: A Macroeconomic Assessment

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  • Francois Bareille
  • Alexandre Gohin

Abstract

The application of synthetic pesticides by farmers generates fierce debates in France. This paper offers an original macroeconomic quantification of the economic and environmental impacts of pesticide applications. We first reveal the statistically significant influence of the prices of crops and pesticides on these applications. This influence is smaller for cereals than for other crops. We then simulate some economic and environmental impacts of potential French policies that may be introduced. As expected, implementation of a tax policy reduces pesticide use and weakens the economic situation of French farmers and food processors. More originally, we find that French livestock activities are seriously affected by increased feed costs. We also find that a pesticide tax increases nitrogen pollution and greenhouse gas emissions due to global land use changes. Finally, policy insights regarding these macroeconomic results are discussed.

Suggested Citation

  • Francois Bareille & Alexandre Gohin, 2020. "Simulating the Market and Environmental Impacts of French Pesticide Policies: A Macroeconomic Assessment," Annals of Economics and Statistics, GENES, issue 139, pages 1-28.
    • Handle: RePEc:adr:anecst:y:2020:i:139:p:1-28
    DOI: 10.15609/annaeconstat2009.139.0001
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    Cited by:

    1. Dupraz, Pierre, 2021. "Policies for the ecological transition of agriculture: the livestock issue," Review of Agricultural, Food and Environmental Studies, Institut National de la Recherche Agronomique (INRA), vol. 101(4), January.
    2. Beckman, Jayson & Ivanic, Maros & Jelliffe, Jeremy L & Baquedano, Felix G & Scott, Sara G, 2020. "Economic and Food Security Impacts of Agricultural Input Reduction Under the European Union Green Deal’s Farm to Fork and Biodiversity Strategies," Economic Brief 327231, United States Department of Agriculture, Economic Research Service.
    3. Jayson Beckman & Maros Ivanic & Jeremy Jelliffe, 2022. "Market impacts of Farm to Fork: Reducing agricultural input usage," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 44(4), pages 1995-2013, December.
    4. Koppenberg, Maximilian & Hirsch, Stefan & Finger, Robert, 2023. "Effects of the debate on glyphosate's carcinogenic risk on pesticide producers' share prices," Ecological Economics, Elsevier, vol. 212(C).
    5. Alexandre Gohin, 2023. "On the sustainability of the French food system: A macroeconomic assessment," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 45(2), pages 860-880, June.

    More about this item

    Keywords

    Agriculture; Pesticide Taxation Scheme; Land Use Change; Carbon Emissions; Generalized Maximum Entropy;
    All these keywords.

    JEL classification:

    • Q11 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Aggregate Supply and Demand Analysis; Prices
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy

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