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Cost efficient pesticide reductions: A study of Sweden

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  • Ing-Marie Gren

Abstract

The minimum cost for reducing the farmers' use of pesticides is calculated. The measures include are; (i) a decrease in use of inputs, (ii) an improvement of the insurance system, and (iii) application of an ecotechnology where 5–10 meters along the borders of the fields are left untreated with pesticides. The cost of reducing the use of pesticides is measured by means of pesticide demand functions and the cost for improving an insurance system is measured as the risk premium. The empirical results indicate that the minimum cost for reducing the use of pesticides by 50% in Sweden corresponds to about 6 per cent of farmers' incomes from crop production. A simple comparison of policy instruments shows that the cost of a quota system is about 40 per cent higher than the costs of the charge and permit market systems. The farmers' decreases in incomes under a charge system are twice as high as under the other two policy instruments. The results are, however, sensitive to the levels of the pesticide price elasticities. Copyright Kluwer Academic Publishers 1994

Suggested Citation

  • Ing-Marie Gren, 1994. "Cost efficient pesticide reductions: A study of Sweden," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 4(3), pages 279-293, June.
    • Handle: RePEc:kap:enreec:v:4:y:1994:i:3:p:279-293
    DOI: 10.1007/BF00692329
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    2. Erik Lichtenberg & Douglas D. Parker & David Zilberman, 1988. "Marginal Analysis of Welfare Costs of Environmental Policies: The Case of Pesticide Regulation," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 70(4), pages 867-874.
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    5. Fuss, Melvyn & McFadden, Daniel, 1978. "Production Economics: A Dual Approach to Theory and Applications (II): Applications of the Theory of Production," History of Economic Thought Books, McMaster University Archive for the History of Economic Thought, volume 2, number fuss1978a.
    6. Lau, Lawrence J., 1978. "Applications of Profit Functions," Histoy of Economic Thought Chapters, in: Fuss, Melvyn & McFadden, Daniel (ed.),Production Economics: A Dual Approach to Theory and Applications, volume 1, chapter 3, McMaster University Archive for the History of Economic Thought.
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    Cited by:

    1. Laurian J. Unnevehr & Helen H. Jensen, 2001. "Industry Compliance Costs: What Would They Look Like in a Risk-Based Integrated Food System?," Center for Agricultural and Rural Development (CARD) Publications 01-wp278, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    2. Thomas Böcker & Robert Finger, 2016. "European Pesticide Tax Schemes in Comparison: An Analysis of Experiences and Developments," Sustainability, MDPI, vol. 8(4), pages 1-22, April.
    3. Thomas G. Böcker & Robert Finger, 2017. "A Meta-Analysis on the Elasticity of Demand for Pesticides," Journal of Agricultural Economics, Wiley Blackwell, vol. 68(2), pages 518-533, June.
    4. Schreefel, L. & van Zanten, H.H.E. & Groot, J.C.J. & Timler, C.J. & Zwetsloot, M.J. & Schrijver, A. Pas & Creamer, R.E. & Schulte, R.P.O. & de Boer, I.J.M., 2022. "Tailor-made solutions for regenerative agriculture in the Netherlands," Agricultural Systems, Elsevier, vol. 203(C).

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