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Replacement of Agricultural Price Supports by Area Payments in the European Union and the Effects on Pesticide Use

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Author Info

  • Teresa Serra
  • David Zilberman
  • Barry K. Goodwin
  • Keijo Hyvonen

Abstract

This article determines the contribution of recent European Union agricultural policy reforms on the use of pesticides. Our theoretical model extends the multioutput generalization of the Lichtenberg—Zilberman damage control technology model developed by Chambers and Lichtenberg. Our empirical analysis uses farm-level data for a sample of French farms. Results suggest that price effects on the use of pesticides are always more elastic than area payment effects. This indicates that policy reforms consisting of a reduction in price supports in favor of area payments, may reduce application of crop protection inputs. Such policy changes, which represent a certain degree of decoupling, took place under the 1992 Common Agricultural Policy reforms. Copyright 2005, 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): 87 (2005)
Issue (Month): 4 ()
Pages: 870-884

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Handle: RePEc:oup:ajagec:v:87:y:2005:i:4:p:870-884

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Cited by:
  1. Sckokai, Paolo & Moro, Daniele & Platoni, Silvia, 2008. "Farm-Level Data Model For Agricultural Policy Analysis: A Two-Way Ecm Approach," 107th Seminar, January 30-February 1, 2008, Sevilla, Spain 6693, European Association of Agricultural Economists.
  2. 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.
  3. Kotakou, Christina A., 2011. "Panel Data Estimation Methods on Supply and Demand Elasticities: The Case of Cotton in Greece," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 43(01), February.
  4. Bhaskar, Arathi & Beghin, John C., 2009. "How Coupled Are Decoupled Farm Payments? A Review of the Evidence," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 34(1), April.
  5. Kallas, Zein & Serra, Teresa & Gil, Jose Maria, 2009. "Effects Of Policy Instruments On Farm Investments And Production Decisions In The Spanish Cop Sector," 2009 Conference, August 16-22, 2009, Beijing, China 49971, International Association of Agricultural Economists.
  6. Vollaro, Michele, 2010. "The impact of the Single Farm Payments on the Expenditure on Fertilizers and crop protection inputs: a comparative study of the Italian agriculture," 120th Seminar, September 2-4, 2010, Chania, Crete 109428, European Association of Agricultural Economists.
  7. Enjolras, Geoffroy & Capitanio, Fabian & Aubert, Magali & Adinolfi, Felice, 2012. "Direct payments, crop insurance and the volatility of farm income. Some evidence in France and in Italy," 123rd Seminar, February 23-24, 2012, Dublin, Ireland 122478, European Association of Agricultural Economists.
  8. Lambarraa, Fatima & Stefanou, Spiro E. & Serra, Teresa & Gil, Jose Maria, 2008. "The impact of the CAP reforms on the efficiency of the COP sector in Spain," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44408, European Association of Agricultural Economists.
  9. Serra, Teresa & Stefanou, Spiro E. & Gil, Jose Maria & Featherstone, Allen M., 2008. "Investment rigidity and policy measures," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6511, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  10. Ignacio Lorite & Margarita García-Vila & María-Ascensión Carmona & Cristina Santos & María-Auxiliadora Soriano, 2012. "Assessment of the Irrigation Advisory Services’ Recommendations and Farmers’ Irrigation Management: A Case Study in Southern Spain," Water Resources Management, Springer, vol. 26(8), pages 2397-2419, June.
  11. El Benni, Nadja & Finger, Robert & Mann, Stefan, 2012. "The effect of agricultural policy change on income risk in Swiss agriculture," 123rd Seminar, February 23-24, 2012, Dublin, Ireland 122532, European Association of Agricultural Economists.
  12. Zhu, Xueqin & Demeter, Robert Milan & Oude Lansink, Alfons G.J.M., 2008. "Competitiveness of dairy farms in three countries: the role of CAP subsidies," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44143, European Association of Agricultural Economists.
  13. Uzeaa, Florentina Nicoleta & Poon, Kenneth & Sparling, David & Weersink, Alfons, 2013. "Farm Support Payments and Risk Balancing: Implications for Financial Riskiness of Canadian Farms," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150708, Agricultural and Applied Economics Association.

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