IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this article or follow this journal

Pests and pesticides, risk and risk aversion

  • J. Pannell, David

Theoretical and applied literature on risk in decision making for agricultural pest control is reviewed. Risk can affect pesticide decision making either because of risk aversion or because of its influence on expected profit. It is concluded that risk does not necessarily lead to increased pesticide use by individual farmers. Uncertainty about some variables, such as pest density and pest mortality, does lead to higher optimal pesticide use under risk aversion. However, uncertainty about other important variables, such as output price and yield, leads to lower optimal levels of pesticide use. Neglect of these variables in most studies has led to the false assumption that pesticides are always risk-reducing inputs. Furthermore, there is evidence that, in general, the pesticide dosage which maximises expected profit is lower under risk than under certainty. Depending on the balance of forces to increase and decrease pesticide use under risk, in many circumstances the net effect of risk on optimal decision making for pest control may be minimal. The effect on risk of information about pest density and other variables (as in integrated pest management programmes) is discussed. Evidence on this issue is mixed. A range of analytical techniques for analysing risk in pest control is reviewed. Throughout the paper, gaps in the existing literature are identified.

(This abstract was borrowed from another version of this item.)

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://www.sciencedirect.com/science/article/B6T3V-458XM63-4/2/726a0257866632d9a3e65cab225b980c
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 under "Related research" (further below) or search for a different version of it.

Article provided by Blackwell in its journal Agricultural Economics.

Volume (Year): 5 (1991)
Issue (Month): 4 (August)
Pages: 361-383

as
in new window

Handle: RePEc:eee:agecon:v:5:y:1991:i:4:p:361-383
Contact details of provider: Web page: http://www.blackwell-synergy.com/loi/agec

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

as in new window
  1. 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.
  2. Antle, John M., 1988. "Integrated Pest Management: It Needs to Recognize Risks, Too," Choices, Agricultural and Applied Economics Association, vol. 3(3).
  3. 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(01), July.
  4. 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 477-87, June.
  5. Mark J Machina, 1982. ""Expected Utility" Analysis without the Independence Axiom," Levine's Working Paper Archive 7650, David K. Levine.
  6. 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(02), December.
  7. Quiggin, John, 1982. "A theory of anticipated utility," Journal of Economic Behavior & Organization, Elsevier, vol. 3(4), pages 323-343, December.
  8. Lichtenberg, Erik & Zilberman, David, 1988. "Efficient Regulation of Environmental Health Risks," The Quarterly Journal of Economics, MIT Press, vol. 103(1), pages 167-78, February.
  9. Tisdell, Clement A., 1986. "Levels Of Pest Control And Uncertainty Of Benefits," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 30(02-03).
  10. Marra, Michele C. & Gould, Thomas D. & Porter, Gregory A., 1989. "A Computable Economic Threshold Model For Weeds In Field Crops With Multiple Pests, Quality Effects, And An Uncertain Spraying Period Length," Northeastern Journal of Agricultural and Resource Economics, Northeastern Agricultural and Resource Economics Association, vol. 18(1), April.
  11. Bardsley, Peter & Harris, Michael, 1987. "An Approach To The Econometric Estimation Of Attitudes To Risk In Agriculture," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 31(02), August.
  12. 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 1065-92, July.
  13. 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," Agricultural Economics Research, United States Department of Agriculture, Economic Research Service, issue 1.
  14. Hans Binswanger, 1980. "Attitudes toward risk: Experimental measurement in rural india," Artefactual Field Experiments 00009, The Field Experiments Website.
  15. Wetzstein, Michael E., 1981. "Pest Information Markets And Integrated Pest Management," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 13(02), December.
  16. Meyer, Jack, 1977. "Choice among distributions," Journal of Economic Theory, Elsevier, vol. 14(2), pages 326-336, April.
  17. 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(01), July.
  18. 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), December.
  19. 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.
  20. 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.
  21. Hamal, K.B. & Anderson, Jock R., 1982. "A Note On Decreasing Absolute Risk Aversion Among Farmers In Nepal," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 26(03), December.
  22. Hadar, Josef & Russell, William R, 1969. "Rules for Ordering Uncertain Prospects," American Economic Review, American Economic Association, vol. 59(1), pages 25-34, March.
  23. 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.
  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, 04.
  25. 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(01), July.
  26. 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(01), July.
  27. Bond, Gary E. & Wonder, Bernard, 1980. "Risk Attitudes Amongst Australian Farmers," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 24(01), April.
  28. Harry Markowitz, 1952. "Portfolio Selection," Journal of Finance, American Finance Association, vol. 7(1), pages 77-91, 03.
  29. Whitmore, G A, 1970. "Third-Degree Stochastic Dominance," American Economic Review, American Economic Association, vol. 60(3), pages 457-59, June.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

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: (Zhang, Lei)

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 references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.

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

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.