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The Economics and Econometrics of Damage Control

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  • Atanu Saha
  • C. Richard Shumway
  • Arthur Havenner

Abstract

Concern for the potentially harmful side effects of agricultural chemical inputs, especially pesticides, highlights the need to accurately determine the economic levels of their use. We consider three model specification issues: interaction of direct production inputs with damage control inputs in damage abatement, justification for a priori exclusion of production inputs from the abatement function, and the motivations and consequences of alternative stochastic specifications. Empirical analysis using farm-level data shows that misspecification of the stochastic element in the production function can overestimate the marginal physical productivity of pesticides and grossly underestimate the responsiveness of demand to increases in pesticide prices. Copyright 1997, Oxford University Press.

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Bibliographic Info

Article provided by Agricultural and Applied Economics Association in its journal American Journal of Agricultural Economics.

Volume (Year): 79 (1997)
Issue (Month): 3 ()
Pages: 773-785

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Handle: RePEc:oup:ajagec:v:79:y:1997:i:3:p:773-785

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Cited by:
  1. Cobourn, Kelly M. & Goodhue, Rachael E. & Williams, Jeffrey C., 2009. "The Role of Harvest Timing in Pest Management: Grower Response to Infestation by the California Olive Fruit Fly," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 49475, Agricultural and Applied Economics Association.
  2. Skevas, Theodoros & Stefanou, Spiro E. & Oude Lansink, Alfons G.J.M., 2010. "Do Farmers Internalise External Impacts of Pesticides in Production?," 120th Seminar, September 2-4, 2010, Chania, Crete 109403, European Association of Agricultural Economists.
  3. Yang, Juan & Mitchell, Paul D., 2004. "Unbalanced Nested Component Error Model For Estimating Pest Damage Functions," 2004 Annual meeting, August 1-4, Denver, CO 20002, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  4. Mitchell, Paul D. & Hurley, Terrance M. & Babcock, Bruce A. & Hellmich, Richard L., 2002. "Insuring The Stewardship Of Bt Corn: 'A Carrot' Versus 'A Stick'," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 27(02), December.
  5. Lichtenberg, Erik & Berlind, Ayesha Velderman, 2005. "Does It Matter Who Scouts?," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 30(02), August.
  6. Sanglestsawai, Santi & Rejesus, Roderick M. & Yorobe, Jose M., Jr., 2012. "Production Risk, Farmer Welfare, and Bt Corn in the Philippines," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124237, Agricultural and Applied Economics Association.
  7. 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).
  8. Alston, Julian M. & Fuller, Kate B. & Kaplan, Jonathan D. & Tumber, Kabir P., 2013. "The Costs and Benefits of Pierce's Disease Research in the California Winegrape Industry," Working Papers 162525, Robert Mondavi Institute Center for Wine Economics.
  9. 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).
  10. Mitchell, Paul D. & Zhu, En (John), 2003. "Moral Hazard And Bt Corn Refuge," 2003 Annual meeting, July 27-30, Montreal, Canada 22113, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  11. Hurley, Terrance M. & Mitchell, Paul D. & Rice, Marlin E., 2001. "What Is The Value Of Bt Corn?," 2001 Annual meeting, August 5-8, Chicago, IL 20476, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  12. Norwood, F. Bailey & Marra, Michele C., 2003. "Pesticide Productivity: Of Bugs and Biases," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 28(03), December.
  13. 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).
  14. Mitchell, Paul D., 2001. "Additive Versus Proportional Pest Damage Functions: Why Ecology Matters," 2001 Annual meeting, August 5-8, Chicago, IL 20775, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  15. Cobourn, Kelly M. & Goodhue, Rachael E. & Williams, Jeffrey C. & Zalom, Frank, 2008. "Pests and Agricultural Commodity Losses: Evaluating Alternative Approaches to Damage Function Estimation," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6530, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  16. Nastis, Stefanos A. & Michailidis, Anastasios & Mattas, Konstadinos, 2011. "Crop biodiversity repercussions of subsidized organic farming in Greece," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114628, European Association of Agricultural Economists.
  17. Hu, Ruifa & Pray, Carl & Huang, Jikun & Rozelle, Scott & Fan, Cunhui & Zhang, Caiping, 2009. "Reforming intellectual property rights and the Bt cotton seed industry in China: Who benefits from policy reform?," Research Policy, Elsevier, vol. 38(5), pages 793-801, June.
  18. Lu, Liang & Elbakidze, Levan, 2011. "Weather Forecast Based Conditional Pest Management: A Stochastic Optimal Control Investigation," 2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania 103655, Agricultural and Applied Economics Association.

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