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Environmental Regulation and Regional Economy: Economic Impacts of the Elimination of Azinphos-methyl on the Apple Industry and Washington State

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  • Cassey, Andrew J.
  • Galinato, Suzette P.
  • Taylor, Justin L.

Abstract

The Environmental Protection Agency declared the pesticide azinphos-methyl must not be used in apple production after September 2012. We use this ban to contribute to the debate on environmental regulation versus industrial output. We use a computable general equilibrium model to estimate the change to sales, price, and employment in the Washington apple industry and the statewide economy had this ban existed in 2007. We estimate the ban decreases profit per acre by $101; changes sales by -0.8%, prices by 0.2%, and employment by 0.1% in the apple industry; but has negligible impacts on the Washington economy.

Suggested Citation

  • 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), pages 1-22.
    • Handle: RePEc:ags:jlofdr:145327
    DOI: 10.22004/ag.econ.145327
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    Cited by:

    1. Chavez, Holcer & Nadolnyak, Denis & Klopper, Joseph W., 2013. "Impacts of Microbial Inoculants as Integrated Pest Management Tools in Apple Production," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 45(4), pages 1-12, November.

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    More about this item

    Keywords

    Crop Production/Industries; Environmental Economics and Policy;

    JEL classification:

    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy
    • Q52 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Pollution Control Adoption and Costs; Distributional Effects; Employment Effects
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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