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The Determinants of Chemical Input Use in Agriculture: A Dynamic Analysis of the Wine Grape–Growing Sector in France

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  • Aubert, Magali
  • Enjolras, Geoffroy

Abstract

This article examines the determinants of chemical consumption by French winegrowers on an individual basis. We introduce criteria relating to the structure of vineyards and the financial situation of the winegrowers. Using data from the Farm Accountancy Data Network (FADN-RICA) for the period 2002–2007 from an annual sample of 607 winegrowers, we study the different factors that encourage winegrowers to use chemical inputs to protect or increase the yield of their vines. Drawing on transversal and longitudinal analyses, we illustrate the benefits derived from differentiating the demand for inputs according to their classification: pesticides or fertilizers. Climatic variables, physical size, and turnover all act as driving forces in the decision to use chemical inputs. We show that taking out crop insurance functions as a substitute for inputs and observe a double moral hazard effect: Winegrowers who increase their insurance coverage reduce their consumption of inputs the most and receive greater compensation; among insured winegrowers, those who use the most inputs make the most claims. As wine grape growing is a consistent activity conducted over a long period, we observe permanence in patterns of use of chemical inputs. (JEL Classifications: Q12, Q13, Q14)

Suggested Citation

  • Aubert, Magali & Enjolras, Geoffroy, 2014. "The Determinants of Chemical Input Use in Agriculture: A Dynamic Analysis of the Wine Grape–Growing Sector in France," Journal of Wine Economics, Cambridge University Press, vol. 9(1), pages 75-99, May.
  • Handle: RePEc:cup:jwecon:v:9:y:2014:i:01:p:75-99_00
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    Cited by:

    1. Aubert, Magali & Enjolras, Geoffroy, 2014. "Between the approved and the actual dose. A diagnosis of pesticide overdosing in French vineyards," Review of Agricultural and Environmental Studies - Revue d'Etudes en Agriculture et Environnement (RAEStud), Institut National de la Recherche Agronomique (INRA), vol. 95(3).
    2. Aubert, M. & Enjolras, G., 2018. "Does crop insurance lead to better environmental practices? Evidence from French farms," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277242, International Association of Agricultural Economists.
    3. Aubert, M. & Enjolras, G., 2018. "Are EU subsidies a springboard to the reduction of pesticide use?," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277228, International Association of Agricultural Economists.
    4. Aubert, Magali & Enjolras, Geoffroy, 2015. "Are short food supply chains a solution for farms facing financial difficulties?," 2015 Conference, August 9-14, 2015, Milan, Italy 211622, International Association of Agricultural Economists.
    5. Finger, Robert & Möhring, Niklas & Dalhaus, Tobias & Böcker, Thomas, 2017. "Revisiting Pesticide Taxation Schemes," Ecological Economics, Elsevier, vol. 134(C), pages 263-266.

    More about this item

    JEL classification:

    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
    • Q14 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Finance

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