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Assessing the Economic Impacts of Pesticide Regulations

Author

Listed:
  • Uwe A. Schneider

    (Research Unit Sustainability and Global Change, Department of Geosciences, Center for Earth System Research and Sustainability, University of Hamburg, 20144 Hamburg, Germany)

  • Livia Rasche

    (Research Unit Sustainability and Global Change, Department of Geosciences, Center for Earth System Research and Sustainability, University of Hamburg, 20144 Hamburg, Germany)

  • Bruce A. McCarl

    (Department of Agricultural Economics, Texas A&M University, College Station, TX 77843-2124, USA)

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.

Suggested Citation

  • Uwe A. Schneider & Livia Rasche & Bruce A. McCarl, 2018. "Assessing the Economic Impacts of Pesticide Regulations," Agriculture, MDPI, vol. 8(4), pages 1-13, April.
    • Handle: RePEc:gam:jagris:v:8:y:2018:i:4:p:53-:d:139411
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    References listed on IDEAS

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    Cited by:

    1. Jianxu Liu & Heng Wang & Sanzidur Rahman & Songsak Sriboonchitta, 2021. "Energy Efficiency, Energy Conservation and Determinants in the Agricultural Sector in Emerging Economies," Agriculture, MDPI, vol. 11(8), pages 1-18, August.

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