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Market-based systems for reducing chemical use in agriculture in the United States

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Author Info

  • C. Rendleman
  • Kenneth Reinert
  • James Tobey

Abstract

This study uses a computable general equilibrium (CGE) model of the U.S. economy to estimate the economic effects of agricultural fertilizer and pesticide input reductions on individual farm sectors, and on the economy as a whole. The costs of reducing agricultural chemicals using a market-based approach and a command-and-control approach are compared. The real cost to society of restrictng fertilizer and pesticide use by 20-percent across all uses is estimated to be $2.3 billion. A market-based approach that would provide incentives to reduce chemical use in the most cost efficient manner would be about 10-percent less costly. Copyright Kluwer Academic Publishers 1995

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Bibliographic Info

Article provided by European Association of Environmental and Resource Economists in its journal Environmental & Resource Economics.

Volume (Year): 5 (1995)
Issue (Month): 1 (January)
Pages: 51-70

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Handle: RePEc:kap:enreec:v:5:y:1995:i:1:p:51-70

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Web page: http://www.springerlink.com/link.asp?id=100263

Related research

Keywords: Agriculture; nonpoint source pollution; pesticide; fertilizer; computable general equilibrium model; chemical charges; tradeable input permits; command-and-control; chemical reduction costs;

References

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  1. Tobey, James A. & Reinert, Kenneth A., 1991. "The Effects of Domestic Agricultural Policy Reform on Environmental Quality," Journal of Agricultural Economics Research, United States Department of Agriculture, Economic Research Service, issue 2.
  2. Tietenberg, T H, 1990. "Economic Instruments for Environmental Regulation," Oxford Review of Economic Policy, Oxford University Press, vol. 6(1), pages 17-33, Spring.
  3. Rendleman, C. Matthew, 1991. "Agrichemical Reduction Policy: Its Effect on Income and Income Distribution," Journal of Agricultural Economics Research, United States Department of Agriculture, Economic Research Service, issue 4.
  4. Shoven, John B. & Whalley, John, 1974. "On the computation of competitive equilibrium on International markets with tariffs," Journal of International Economics, Elsevier, vol. 4(4), pages 341-354, November.
  5. Lars Bergman, 1991. "General equilibrium effects of environmental policy: A CGE-modeling approach," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 1(1), pages 43-61, March.
  6. Ayer, Harry W. & Conklin, Neilson C., 1990. "ECONOMICS OF AG CHEMICALS: Flawed Methodology and a Conflict of Interest Quagmire," Choices, Agricultural and Applied Economics Association, vol. 5(4).
  7. John B. Shoven & John Whalley, 1972. "A General Equilibrium Calculation of the Effects of Differential Taxation of Income from Capital in the U.S," Cowles Foundation Discussion Papers 328, Cowles Foundation for Research in Economics, Yale University.
  8. Bohm, Peter & Russell, Clifford S., 1985. "Comparative analysis of alternative policy instruments," Handbook of Natural Resource and Energy Economics, in: A. V. Kneeseā€  & J. L. Sweeney (ed.), Handbook of Natural Resource and Energy Economics, edition 1, volume 1, chapter 10, pages 395-460 Elsevier.
  9. Cropper, Maureen L & Oates, Wallace E, 1992. "Environmental Economics: A Survey," Journal of Economic Literature, American Economic Association, vol. 30(2), pages 675-740, June.
  10. Knutson, Ronald D. & Taylor, C. Robert & Penson, John B., Jr. & Smith, Edward G., 1990. "Economic Impacts Of Reduced Chemical Use," Choices, Agricultural and Applied Economics Association, vol. 5(4).
  11. Hrubovcak, James & LeBlanc, Michael & Miranowski, John, 1990. "Limitations in Evaluating Environmental and Agricultural Policy Coordination Benefits," American Economic Review, American Economic Association, vol. 80(2), pages 208-12, May.
  12. Xepapadeas, A. P., 1991. "Environmental policy under imperfect information: Incentives and moral hazard," Journal of Environmental Economics and Management, Elsevier, vol. 20(2), pages 113-126, March.
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Cited by:
  1. Ribaudo, Marc O. & Heimlich, Ralph & Claassen, Roger & Peters, Mark, 2001. "Least-cost management of nonpoint source pollution: source reduction versus interception strategies for controlling nitrogen loss in the Mississippi Basin," Ecological Economics, Elsevier, vol. 37(2), pages 183-197, May.
  2. Cassey, Andrew J. & Galinato, Suzette P. & Taylor, Justin L., 2012. "Environmental Regulation and Regional Economy: Economic Impacts of the Elimination of Azinphos-methyl on the Apple Industry and Washington State," Journal of Food Distribution Research, Food Distribution Research Society, vol. 43(2), July.

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