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The Damage Control Effect Of Pesticides On Total Factor Productivity Growth

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  • Giannis Karagiannis

    ()
    (Department of Economics, University of Macedonia, Greece)

  • Vangelis Tzouvelekas

    ()
    (Department of Economics, University of Crete, Greece)

Abstract

The present paper extents the existing literature providing a theoretically consistent framework for decomposing TFP growth taking into account the indirect effect of pesticides use on farm production. The theoretical framework for modeling the effect of damage control agents is based on Fox and Weersink output damage approach which allows for both increasing and decreasing returns on pesticide use while, on the other hand, it provides consistent econometric estimates of the production technology when pesticides are applied in a preventive way. The model is extended accounting for spillover effects in damage control input use as well as on changes in abatement technology per se. The empirical model is applied to a panel of 60 olive-growing farms in Crete, Greece during the 1999-03 period. The results suggest that Cretan farmers enjoyed significant TFP growth stemming mainly from technological improvement in farming technology. Further, improvement of farmer�s know-how seems to account for a significant part of TFP growth. The damage-control effect is present accounting for the 5.0% of the observed TFP improvements in the surveyed farms.

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Paper provided by University of Crete, Department of Economics in its series Working Papers with number 1007.

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Date of creation: 03 Jul 2010
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Handle: RePEc:crt:wpaper:1007

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  1. Alfons Oude Lansink & Alain Carpentier, 2001. "Damage Control Productivity: An Input Damage Abatement Approach," Journal of Agricultural Economics, Wiley Blackwell, vol. 52(3), pages 11-22.
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Cited by:
  1. Fałkowski, Jan, 2013. "Does it matter how much land your neighbour owns? The functioning of land markets in Poland from a social comparison perspective," Working Papers 157118, Factor Markets, Centre for European Policy Studies.
  2. Falkowski, Jan, 2013. "Does it matter how much land your neighbour owns? The functioning of land markets in Poland from a social comparison perspective," Factor Markets Working Papers 171, Centre for European Policy Studies.

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