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Pests and pesticides, risk and risk aversion

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  • 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.
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  • 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
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    1. Danne, Michael & Mußhoff, Oliver & Schulte, Michael, 2018. "Analysing the importance of glyphosate as part of agricultural srategies: A discrete choice experiment," DARE Discussion Papers 1802, Georg-August University of Göttingen, Department of Agricultural Economics and Rural Development (DARE).
    2. Karagiannis, Giannis, 1999. "Proportional Profit Taxes And Resource Management Under Production Uncertainty," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 24(2), pages 1-11, December.
    3. J. K. Horowitz & E. Lichtenberg, 1994. "Risk‐Reducing And Risk‐Increasing Effects Of Pesticides," Journal of Agricultural Economics, Wiley Blackwell, vol. 45(1), pages 82-89, January.
    4. Dirksmeyer, Walter, 2007. "Ist Eine Reduzierung Des Pflanzenschutzmitteleinsatzes Im Freilandgemüsebau Möglich? Ergebnisse Eines Bioökonomischen Simulationsmodells," 47th Annual Conference, Weihenstephan, Germany, September 26-28, 2007 7592, German Association of Agricultural Economists (GEWISOLA).
    5. Carpentier, A. & Reboud, X., 2018. "Why farmers consider pesticides the ultimate in crop protection: economic and behavioral insights," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277528, International Association of Agricultural Economists.
    6. Theodoros Skevas & Teresa Serra, 2016. "The role of pest pressure in technical and environmental inefficiency analysis of Dutch arable farms: an event-specific data envelopment approach," Journal of Productivity Analysis, Springer, vol. 46(2), pages 139-153, December.
    7. Antti Saastamoinen, 2015. "Heteroscedasticity Or Production Risk? A Synthetic View," Journal of Economic Surveys, Wiley Blackwell, vol. 29(3), pages 459-478, July.
    8. Mitchell, Paul D. & Hurley, Terrance M. & Babcock, Bruce A. & Hellmich, Richard L., 2002. "Insuring The Stewardship Of Bt Corn: 'A Carrot' Versus 'A Stick'," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 27(2), pages 1-16, December.
    9. 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.
    10. Nolan, Elizabeth & Santos, Paulo, 2012. "Insurance premiums and GM traits," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 125942, International Association of Agricultural Economists.
    11. Lichtenberg, Erik, 2002. "Agriculture and the environment," Handbook of Agricultural Economics, in: B. L. Gardner & G. C. Rausser (ed.), Handbook of Agricultural Economics, edition 1, volume 2, chapter 23, pages 1249-1313, Elsevier.
    12. Cobourn, Kelly M. & Goodhue, Rachael E. & Williams, Jeffrey C., 2009. "The Role of Harvest Timing in Pest Management: Grower Response to Infestation by the California Olive Fruit Fly," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 49475, Agricultural and Applied Economics Association.
    13. Ricome, Aymeric & Chaib, Karim & Ridier, Aude & Kephaliacos, Charilaos & Carpy-Goulard, Francoise, 2016. "The Role of Marketing Contracts in the Adoption of Low-Input Production Practices in the Presence of Income Supports: An Application in Southwestern France," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 41(3), pages 1-29.
    14. Buchholz, Matthias & Peth, Denise & Mußhoff, Oliver, 2018. "Tax or green nudge? An experimental analysis of pesticide policies in Germany," DARE Discussion Papers 1813, Georg-August University of Göttingen, Department of Agricultural Economics and Rural Development (DARE).
    15. Falconer, K. & Hodge, I., 2000. "Using economic incentives for pesticide usage reductions: responsiveness to input taxation and agricultural systems," Agricultural Systems, Elsevier, vol. 63(3), pages 175-194, March.
    16. Archer, David W. & Shogren, Jason F., 1996. "Endogenous risk in weed control management," Agricultural Economics, Blackwell, vol. 14(2), pages 103-122, July.
    17. Woongchan Jeon & Kwansoo Kim, 2017. "Optimal Weed Control Strategies in Rice Production under Dynamic and Static Decision Rules in South Korea," Sustainability, MDPI, Open Access Journal, vol. 9(6), pages 1-11, June.
    18. 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.
    19. Dirksmeyer, W., 2008. "Ist eine Reduzierung des Pflanzenschutzmitteleinsatzes im Freilandgemüsebau möglich? Ergebnisse eines bioökonomischen Simulationsmodells," Proceedings “Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.”, German Association of Agricultural Economists (GEWISOLA), vol. 43, March.
    20. Pannell, David J., 1994. "The Value Of Information In Herbicide Decision Making For Weed Control In Australian Wheat Crops," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 19(2), pages 1-16, December.
    21. Pannell, David J. & Llewellyn, Rick S. & Corbeels, Marc, 2013. "The farm-level economics of conservation agriculture for resource-poor farmers," Working Papers 166526, University of Western Australia, School of Agricultural and Resource Economics.
    22. Kishor, Nalin M., 1992. "Pesticide externalities, comparative advantage, and commodity trade : cotton in Andhra Pradesh, India," Policy Research Working Paper Series 928, The World Bank.
    23. 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.
    24. Gotsch, Nikolaus & Regev, Uri, 1996. "Fungicide use under risk in Swiss wheat production," Agricultural Economics, Blackwell, vol. 14(1), pages 1-9, April.

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