IDEAS home Printed from https://ideas.repec.org/a/eee/agecon/v5y1991i4p361-383.html
   My bibliography  Save this article

Pests and pesticides, risk and risk aversion

Author

Listed:
  • J. Pannell, David

Abstract

Theoretical and applied literature on risk in pest control decision making is reviewed. Risk can affect pesticide decision making either because of risk aversion or because of its influence on expected profit. It is suggested that pesticide application does not necessarily reduce risk and that risk does not necessarily lead to increased pesticide use by individual farmers. Analyses need to consider more sources of risk than has usually occurred. The influence of pest information on risk is discussed. A range of analytical techniques for analysing risk in pest control is reviewed. Gaps in existing literature are identified.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • J. Pannell, David, 1991. "Pests and pesticides, risk and risk aversion," Agricultural Economics, Blackwell, vol. 5(4), pages 361-383, August.
  • Handle: RePEc:eee:agecon:v:5:y:1991:i:4:p:361-383
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/0169-5150(91)90028-J
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Whitmore, G A, 1970. "Third-Degree Stochastic Dominance," American Economic Review, American Economic Association, vol. 60(3), pages 457-459, June.
    2. Wetzstein, Michael E., 1981. "Pest Information Markets And Integrated Pest Management," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 13(2), pages 1-5, December.
    3. Meyer, Jack, 1977. "Choice among distributions," Journal of Economic Theory, Elsevier, vol. 14(2), pages 326-336, April.
    4. L. Joe Moffitt & Richard L. Farnsworth & Luis R. Zavaleta & Marcos Kogan, 1986. "Economic Impact of Public Pest Information: Soybean Insect Forecasts in Illinois," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 68(2), pages 274-279.
    5. Chew, Soo Hong, 1983. "A Generalization of the Quasilinear Mean with Applications to the Measurement of Income Inequality and Decision Theory Resolving the Allais Paradox," Econometrica, Econometric Society, vol. 51(4), pages 1065-1092, July.
    6. Gershon Feder, 1979. "Pesticides, Information, and Pest Management under Uncertainty," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 61(1), pages 97-103.
    7. C. Robert Taylor, 1986. "Risk Aversion versus Expected Profit Maximization with a Progressive Income Tax," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 68(1), pages 137-143.
    8. Clement A. Tisdell, 1986. "Levels Of Pest Control And Uncertainty Of Benefits," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 30(2-3), pages 157-161, 08-12.
    9. Musser, Wesley N. & Wetzstein, Michael E. & Reece, Susan Y. & Varca, Philip E. & Edwards, David M. & Douce, G. Keith, 1986. "Beliefs of Farmers and Adoption of Integrated Pest Management," Journal of Agricultural Economics Research, United States Department of Agriculture, Economic Research Service, vol. 38(1), pages 1-11.
    10. Moffitt, L. Joe & Hall, Darwin C. & Osteen, Craig D., 1984. "Economic Thresholds Under Uncertainty with Application to Corn Nematode Management," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 16(2), pages 151-158, December.
    11. Meyer, Jack, 1977. "Second Degree Stochastic Dominance with Respect to a Function," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 18(2), pages 477-487, June.
    12. Gerald A. Carlson, 1970. "A Decision Theoretic Approach to Crop Disease Prediction and Control," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 52(2), pages 216-223.
    13. Thornton, P. K. & Dent, J. B., 1984. "An information system for the control of Puccinia hordei: II--Implementation," Agricultural Systems, Elsevier, vol. 15(4), pages 225-243.
    14. Musser, Wesley N. & Tew, Bernard V. & Epperson, James E., 1981. "An Economic Examination Of An Integrated Pest Management Production System With A Contrast Between E-V And Stochastic Dominance Analysis," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 13(1), pages 1-6, July.
    15. C. Robert Taylor & Oscar R. Burt, 1984. "Near-Optimal Management Strategies for Controlling Wild Oats in Spring Wheat," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 66(1), pages 50-60.
    16. Moffitt, L. Joe & Hall, Darwin C. & Osteen, Craig D., 1984. "Economic Thresholds Under Uncertainty With Application To Corn Nematode Management," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 16(2), pages 1-7, December.
    17. James P. Quirk & Rubin Saposnik, 1962. "Admissibility and Measurable Utility Functions," Review of Economic Studies, Oxford University Press, vol. 29(2), pages 140-146.
    18. Thomas M. Burrows, 1983. "Pesticide Demand and Integrated Pest Management: A Limited Dependent Variable Analysis," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 65(4), pages 806-810.
    19. Catherine R. Greene & Randall A. Kramer & George W. Norton & Edwin G. Rajotte & McPherson Robert M., 1985. "An Economic Analysis of Soybean Integrated Pest Management," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 67(3), pages 567-572.
    20. Antle, John M., 1988. "Integrated Pest Management: It Needs to Recognize Risks, Too," Choices: The Magazine of Food, Farm, and Resource Issues, Agricultural and Applied Economics Association, vol. 3(3), pages 1-4.
    21. Auld, Bruce A. & Tisdell, Clem A., 1987. "Economic thresholds and response to uncertainty in weed control," Agricultural Systems, Elsevier, vol. 25(3), pages 219-227.
    22. Scott, R. Douglass, III & Cochran, Mark J. & Nicholson, W.F., Jr., 1986. "Economic Analysis Of Cotton Integrated Pest Management Strategies: A Comment," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 18(1), pages 1-3, July.
    23. Hadar, Josef & Russell, William R, 1969. "Rules for Ordering Uncertain Prospects," American Economic Review, American Economic Association, vol. 59(1), pages 25-34, March.
    24. Gary E. Bond & Bernard Wonder, 1980. "Risk Attitudes Amongst Australian Farmers," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 24(1), pages 16-34, April.
    25. Thornton, P. K. & Dent, J. B., 1984. "An information system for the control of Puccinia hordei: I--Design and operation," Agricultural Systems, Elsevier, vol. 15(4), pages 209-224.
    26. Liapis, Peter S. & Moffitt, L. Joe, 1986. "Economic Analysis Of Cotton Integrated Pest Management Strategies: Reply," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 18(1), pages 1-2, July.
    27. John M. Antle, 1983. "Incorporating Risk in Production Analysis," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 65(5), pages 1099-1106.
    28. Harry Markowitz, 1952. "Portfolio Selection," Journal of Finance, American Finance Association, vol. 7(1), pages 77-91, March.
    29. Machina, Mark J, 1982. ""Expected Utility" Analysis without the Independence Axiom," Econometrica, Econometric Society, vol. 50(2), pages 277-323, March.
    30. Antle, John M., 1983. "Incorporating Risk In Production Analysis," 1983 Annual Meeting, July 31-August 3, West Lafayette, Indiana 279106, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    31. Anderson, Jock R. & Dillon, John L. & Hardaker, Brian, 1977. "Agricultural Decision Analysis," Monographs: Applied Economics, AgEcon Search, number 288652, September.
    32. Mark J. Cochran & Lindon J. Robison & Weldon Lodwick, 1985. "Improving the Efficiency of Stochastic Dominance Techniques Using Convex Set Stochastic Dominance," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 67(2), pages 289-295.
    33. David K. Lambert & Bruce A. McCarl, 1985. "Risk Modeling Using Direct Solution of Nonlinear Approximations of the Utility Function," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 67(4), pages 846-852.
    34. Pandey, Sushil, 1989. "Economics of Wild Oats Control: An Application of a Stochastic Dynamic Programming Model," 1989 Conference (33rd), February 7-9, 1989, Christchurch, New Zealand 144816, Australian Agricultural and Resource Economics Society.
    35. Liapis, Peter S. & Moffitt, L. Joe, 1983. "Economic Analysis Of Cotton Integrated Pest Management Strategies," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 15(1), pages 1-6, July.
    36. Liapis, Peter S. & Moffitt, L. Joe, 1986. "Economic Analysis of Cotton Integrated Pest Management Strategies: Reply," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 18(1), pages 173-174, July.
    37. Prabhu L. Pingali & Gerald A. Carlson, 1985. "Human Capital, Adjustments in Subjective Probabilities, and the Demand for Pest Controls," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 67(4), pages 853-861.
    38. Katherine H. Reichelderfer, 1980. "Economics of Integrated Pest Management: Discussion," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 62(5), pages 1012-1013.
    39. Wetzstein, Michael E., 1981. "Pest Information Markets and Integrated Pest Management," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 13(2), pages 79-83, December.
    40. Bond, Gary E. & Wonder, Bernard, 1980. "Risk Attitudes Amongst Australian Farmers," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 24(1), pages 1-19, April.
    41. H. Dennis Tolley & Rulon D. Pope, 1988. "Testing for Stochastic Dominance," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 70(3), pages 693-700.
    42. Gold, Harvey J. & Sutton, Turner B., 1986. "A decision analytic model for chemical control of sooty blotch and flyspeck diseases of apple," Agricultural Systems, Elsevier, vol. 21(2), pages 129-157.
    43. Erik Lichtenberg & David Zilberman, 1988. "Efficient Regulation of Environmental Health Risks," The Quarterly Journal of Economics, Oxford University Press, vol. 103(1), pages 167-178.
    44. Scott, R. Douglas & Cochran, M. J. & Nicholson, W. F., 1986. "Economic Analysis of Cotton Integrated Pest Management Strategies: A Comment," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 18(1), pages 169-172, July.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. D. J. Pannell, 1990. "Responses To Risk In Weed Control Decisions Under Expected Profit Maximisation," Journal of Agricultural Economics, Wiley Blackwell, vol. 41(3), pages 391-401, September.
    2. Pannell, David J. & Malcolm, Bill & Kingwell, Ross S., 2000. "Are we risking too much? Perspectives on risk in farm modelling," Agricultural Economics, Blackwell, vol. 23(1), pages 69-78, June.
    3. Pannell, David J., 1988. "Weed Management: A Review of Applied Economics Research in Australia," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 56(03), pages 1-15, December.
    4. Schoney, R. A., 1990. "An Analysis of Wheat Supply Response Under Risk and Uncertainty," Working Papers 244030, Agriculture and Agri-Food Canada.
    5. Regev, Uri, 1990. "The Impact of Risk on Pest Management Strategies," 1990 Annual meeting, August 5-8, Vancouver, Canada 270735, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    6. Wu, JunJie, 2001. "Optimal weed control under static and dynamic decision rules," Agricultural Economics, Blackwell, vol. 25(1), pages 119-130, June.
    7. Liu, Yangxuan & Langemeier, Michael & Small, Ian & Joseph, Laura & Fry, William, 2015. "Risk management strategies using potato precision farming technology," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205417, Agricultural and Applied Economics Association.
    8. Yangxuan Liu & Michael R. Langemeier & Ian M. Small & Laura Joseph & William E. Fry & Jean B. Ristaino & Amanda Saville & Benjamin M. Gramig & Paul V. Preckel, 2018. "A Risk Analysis of Precision Agriculture Technology to Manage Tomato Late Blight," Sustainability, MDPI, vol. 10(9), pages 1-19, August.
    9. W. Wong & R. Chan, 2008. "Prospect and Markowitz stochastic dominance," Annals of Finance, Springer, vol. 4(1), pages 105-129, January.
    10. Musser, Wesley N., 1994. "Progress In Risk Analysis In Regional Projects," 1994 Quantifying Long Run Agricultural Risks and Evaluating Farmer Responses Risk, Technical Committee Meeting, March 24-26, 1994, Gulf Shores State Park, Alabama 271553, Regional Research Projects > S-232: Quantifying Long Run Agricultural Risks and Evaluating Farmer Responses to Risk.
    11. Pannell, David J, 1989. "A Model of Wheat Yield Response to Application of Diclofop-Methyl to Control Ryegrass (Lolium Rigidum)," Discussion Papers 232314, University of Western Australia, School of Agricultural and Resource Economics.
    12. Hardaker, J. B., 1982. "Fundamental Aspects Of Risk And Uncertainty In Agriculture," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 21(2), October.
    13. Regmi, Anita, 1990. "The value of information in integrated pest management of corn rootworm and European corn borer in Minnesota," Faculty and Alumni Dissertations 307267, University of Minnesota, Department of Applied Economics.
    14. Liu, Yangxuan & Langemeier, Michael & Small, Ian & Joseph, Laura & Fry, William & Ristaino, Jean & Saville, Amanda, 2017. "A Risk Analysis of precision farming for tomato production," 2017 Annual Meeting, February 4-7, 2017, Mobile, Alabama 253119, Southern Agricultural Economics Association.
    15. Jourdain, Damien & Scopel, Eric & Affholder, Francois, 2001. "The Impact Of Conservation Tillage On The Productivity And Stability Of Maize Cropping Systems: A Case Study In Western Mexico," Economics Working Papers 46549, CIMMYT: International Maize and Wheat Improvement Center.
    16. Peterson, Jeffrey M. & Boisvert, Richard N., 2001. "Designing Nonpoint Source Pollution Policies With Limited Information About Both Risk Attitudes And Production Technology," 2001 Annual meeting, August 5-8, Chicago, IL 20720, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    17. Wall, Charles A. & Fisher, Brian S., 1988. "Supply Response and the Theory of Production and Profit Functions," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 56(03), pages 1-22, December.
    18. Xu, Guo & Wing-Keung, Wong & Lixing, Zhu, 2013. "Almost Stochastic Dominance for Risk-Averse and Risk-Seeking Investors," MPRA Paper 51744, University Library of Munich, Germany.
    19. Farquharson, Robert J., 1991. "A Farm Level Evaluation of a New Twinning Technology in Beef Cattle," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 59(01), pages 1-21, April.
    20. Torkamani, Javad, 2005. "Using a whole-farm modelling approach to assess prospective technologies under uncertainty," Agricultural Systems, Elsevier, vol. 85(2), pages 138-154, August.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:agecon:v:5:y:1991:i:4:p:361-383. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: . General contact details of provider: http://www.blackwell-synergy.com/loi/agec .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.blackwell-synergy.com/loi/agec .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.