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Damage Control Productivity: An Input Damage Abatement Approach

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  • Alfons Oude Lansink
  • Alain Carpentier

Abstract

This paper compares the value of the marginal product of three different pesticides from different specifications of the production function. The specifications are the output damage abatement specification proposed by Lichtenberg and Zilberman, a general input damage abatement specification and a traditional production function. These specifications are estimated on panel data of specialised Dutch arable farms over the period 1989–1992, using Generalised Maximum Entropy estimation. Results of the input damage abatement specification show that pesticides have different impacts on individual productive inputs, although statistical evidence is weak. The output damage abatement specification produces statistically more significant relations, but imposes restrictions that are only partly supported by the data. It is also found that estimation of a quadratic traditional production function, that treats damage abatement inputs in the same way as productive inputs, does not lead to over estimation of the value of the marginal product as previous authors have hypothesised.

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  • Alfons Oude Lansink & Alain Carpentier, 2001. "Damage Control Productivity: An Input Damage Abatement Approach," Journal of Agricultural Economics, Wiley Blackwell, vol. 52(3), pages 11-22, September.
    • Handle: RePEc:bla:jageco:v:52:y:2001:i:3:p:11-22
    DOI: 10.1111/j.1477-9552.2001.tb00935.x
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    Cited by:

    1. Kassoum Ayouba, 2016. "On the estimation of damage reducing functions," Economics Bulletin, AccessEcon, vol. 36(4), pages 2394-2404.
    2. Fernandez-Cornejo, Jorge & Nehring, Richard & Osteen, Craig & Wechsler, Seth James & Martin, Andrew & Vialou, Alex, 2014. "Pesticide Use in U.S. Agriculture: 21 Selected Crops, 1960-2008," Economic Information Bulletin 178462, United States Department of Agriculture, Economic Research Service.
    3. Boyer, Christopher N. & Harmon, Xavier & Smith, S. Aaron & Lambert, Dayton M. & Kelly, Heather & Jordan, Jamie & Newman, Melvin, 2016. "A Two-Stage Approach for Estimating the Value of Damage Control with Fungicide in Soybean Production," 2016 Annual Meeting, February 6-9, 2016, San Antonio, Texas 229574, Southern Agricultural Economics Association.
    4. Falck-Zepeda, Jose & Horna, Daniela & Smale, Melinda, 2007. "The economic impact and the distribution of benefits and risk from the adoption of insect resistant (Bt) cotton in West Africa," IFPRI discussion papers 718, International Food Policy Research Institute (IFPRI).
    5. Theodoros Skevas & Spiro E. Stefanou & Alfons Oude Lansink, 2013. "Do Farmers Internalise Environmental Spillovers of Pesticides in Production?," Journal of Agricultural Economics, Wiley Blackwell, vol. 64(3), pages 624-640, September.
    6. Robert G. Chambers & Giannis Karagiannis & Vangelis Tzouvelekas, 2009. "Yet Another Look at Pest Damage and Pesticide Productivity," Working Papers 0911, University of Crete, Department of Economics.
    7. Agnès Bernis-Fonteneau & Meryem Aakairi & Omar Saadani-Hassani & Giandaniele Castangia & Rachid Ait Babahmad & Paolo Colangelo & Ugo D’Ambrosio & Devra I. Jarvis, 2023. "Farmers’ Variety Naming and Crop Varietal Diversity of Two Cereal and Three Legume Species in the Moroccan High Atlas, Using DATAR," Sustainability, MDPI, vol. 15(13), pages 1-17, July.
    8. Dirksmeyer, Walter, 2007. "Ist Eine Reduzierung Des Pflanzenschutzmitteleinsatzes Im Freilandgemüsebau Möglich? Ergebnisse Eines Bioökonomischen Simulationsmodells," 47th Annual Conference, Weihenstephan, Germany, September 26-28, 2007 7592, German Association of Agricultural Economists (GEWISOLA).
    9. Perry, Edward D. & Moschini, GianCarlo, 2020. "Neonicotinoids in U.S. maize: Insecticide substitution effects and environmental risk," Journal of Environmental Economics and Management, Elsevier, vol. 102(C).
    10. Giannis Karagiannis & Vangelis Tzouvelekas, 2012. "The damage-control effect of pesticides on total factor productivity growth," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 39(3), pages 417-437, July.
    11. Singbo, Alphonse G. & Lansink, Alfons Oude & Emvalomatis, Grigorios, 2015. "Estimating shadow prices and efficiency analysis of productive inputs and pesticide use of vegetable production," European Journal of Operational Research, Elsevier, vol. 245(1), pages 265-272.
    12. Margarita Genius & Phoebe Koundouri & Céline Nauges & Vangelis Tzouvelekas, 2014. "Information Transmission in Irrigation Technology Adoption and Diffusion: Social Learning, Extension Services, and Spatial Effects," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 96(1), pages 328-344.
    13. Kwikiriza, Norman & Katungi, Enid & Horna, Daniela, 2011. "Estimating the role of spatial varietal diversity on crop productivity within an abatement framework: The case of banana in Uganda," IFPRI discussion papers 01051, International Food Policy Research Institute (IFPRI).
    14. Serra, Teresa & Zilberman, David & Goodwin, Barry K. & Featherstone, Allen M., 2005. "Effects of Decoupling on the Average and the Variability of Output," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24601, European Association of Agricultural Economists.
    15. Lichtenberg, Erik & Berlind, Ayesha Velderman, 2005. "Does It Matter Who Scouts?," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 30(2), pages 1-18, August.
    16. Horna, Daniela & Smale, Melinda & Al-Hassan, Ramatu & Falck-Zepeda, José & Timpo, Samuel E., 2008. "Insecticide use on vegetables in Ghana: Would GM seed benefit farmers?," IFPRI discussion papers 785, International Food Policy Research Institute (IFPRI).
    17. Grovermann, Christian & Schreinemachers, Pepijn & Berger, Thomas, 2012. "Private and Social Levels of Pesticide Overuse in Rapidly Intensifying Upland Agriculture in Thailand," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126341, International Association of Agricultural Economists.
    18. Theodoros Skevas & Teresa Serra, 2017. "Derivation of netput shadow prices under different levels of pest pressure," Journal of Productivity Analysis, Springer, vol. 48(1), pages 25-34, August.
    19. Skevas, Theodoros & Stefanou, Spiro E. & Oude Lansink, Alfons, 2014. "Pesticide use, environmental spillovers and efficiency: A DEA risk-adjusted efficiency approach applied to Dutch arable farming," European Journal of Operational Research, Elsevier, vol. 237(2), pages 658-664.
    20. Alfons Lansink & Elvira Silva, 2004. "Non-Parametric Production Analysis of Pesticides Use in the Netherlands," Journal of Productivity Analysis, Springer, vol. 21(1), pages 49-65, January.
    21. Lan Tran & Theodoros Skevas & Laura McCann, 2023. "Measuring pesticide overuse and its determinants: Evidence from Vietnamese rice and fruit farms," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 67(3), pages 417-437, July.
    22. Horna, J. Daniela & Timpo, Samuel E. & Al-Hassan, Ramatu M. & Smale, Melinda & Falck-Zepeda, Jose Benjamin, 2008. "Vegetable Production and Pesticide Use in Ghana: Would GM Varieties Have an Impact at the Farm Level?," 2007 Second International Conference, August 20-22, 2007, Accra, Ghana 52182, African Association of Agricultural Economists (AAAE).
    23. Amer Ait Sidhoum, 2023. "Assessing the contribution of farmers’ working conditions to productive efficiency in the presence of uncertainty, a nonparametric approach," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(8), pages 8601-8622, August.
    24. Karagiannis, Giannis & Tsionas, Efthimios & Tzouvelekas, Vangelis, 2005. "Efficiency in Damage Control Inputs: A Stochastic Production Frontier Approach," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24642, European Association of Agricultural Economists.
    25. Zheng, Y. & Gohin, A., 2018. "Estimating dynamic stochastic decision models: explore the generalized maximum entropy alternative," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 276001, International Association of Agricultural Economists.

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