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Disaggregating the demand for pesticides: does it matter?

Author

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  • Adélaïde Fadhuile

    (UGA [2016-2019] - Université Grenoble Alpes [2016-2019], GAEL - Laboratoire d'Economie Appliquée de Grenoble - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - INRA - Institut National de la Recherche Agronomique - CNRS - Centre National de la Recherche Scientifique - UGA [2016-2019] - Université Grenoble Alpes [2016-2019])

  • Stéphane Lemarié

    (INRA - Institut National de la Recherche Agronomique, GAEL - Laboratoire d'Economie Appliquée de Grenoble - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - INRA - Institut National de la Recherche Agronomique - CNRS - Centre National de la Recherche Scientifique - UGA [2016-2019] - Université Grenoble Alpes [2016-2019])

  • Alain Pirotte

    (CRED - Centre de Recherche en Economie et Droit - UP2 - Université Panthéon-Assas, Travail, Emploi et Politiques Publiques (TEPP) - ERUDITE - Equipe de Recherche sur l’Utilisation des Données Individuelles en lien avec la Théorie Economique - UPEM - Université Paris-Est Marne-la-Vallée - UPEC UP12 - Université Paris-Est Créteil Val-de-Marne - Paris 12 - ALISS - Alimentation et sciences sociales - INRA - Institut National de la Recherche Agronomique)

Abstract

This paper analyzes the demand of French farmers for pesticides by disaggregating among the three main categories of pesticides. We estimate the demand elasticities of herbicides, insecticides, and fungicides with respect to pesticide expenditure, and also consider crop differentiation. We retain a Linear Approximated Almost Ideal Demand System specification. A Full-Information Maximum Likelihood estimation procedure is used to deal with corner solution problems and censored data. The estimation is based on two cross-sections covering pesticide use of three major crops cultivated in France in 2001 and 2006. Our results show that farmers' response to price variation is very low, especially for 2001. Furthermore, elasticities of pesticide expenditure are significantly different across categories: the highest levels are obtained for fungicides and the lowest ones for insecticides. Finally, we find higher own-price elasticities for herbicides and fungicides than for insecticides, which are less frequently used.

Suggested Citation

  • Adélaïde Fadhuile & Stéphane Lemarié & Alain Pirotte, 2016. "Disaggregating the demand for pesticides: does it matter?," Post-Print hal-01338386, HAL.
    • Handle: RePEc:hal:journl:hal-01338386
    DOI: 10.1111/cjag.12070
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