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US agricultural sector analysis on pesticide externalities – the impact of climate change and a Pigovian tax

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  • Nikolinka Shakhramanyan
  • Uwe Schneider
  • Bruce McCarl

Abstract

Residuals from agricultural pesticides threaten the environment and human health. Climate change alters these externalities because it affects pest pressure and pesticide application rates. This study examines damages from pesticide externalities in US agriculture under different climate projections and the effects of alternative regulations. We find divergent impacts of externality regulation and climate change on agricultural production in the US. A Pigovian tax on pesticide externalities generally increases crop production cost, but farm revenue improves because of increased commodity prices. Climate change generally decreases US farm revenue because production increases and prices fall. Results also show a heterogeneous effect of climate change on pest management intensities across major crops. Copyright Springer Science+Business Media B.V. 2013

Suggested Citation

  • Nikolinka Shakhramanyan & Uwe Schneider & Bruce McCarl, 2013. "US agricultural sector analysis on pesticide externalities – the impact of climate change and a Pigovian tax," Climatic Change, Springer, vol. 117(4), pages 711-723, April.
    • Handle: RePEc:spr:climat:v:117:y:2013:i:4:p:711-723
    DOI: 10.1007/s10584-012-0585-3
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    References listed on IDEAS

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    1. Schneider, Uwe A. & McCarl, Bruce A. & Schmid, Erwin, 2007. "Agricultural sector analysis on greenhouse gas mitigation in US agriculture and forestry," Agricultural Systems, Elsevier, vol. 94(2), pages 128-140, May.
    2. Knutson, Ronald D. & Smith, Edward G., 1999. "Impacts of Eliminating Organophosphates and Carbamates from Crop Production," Working Papers 258082, Texas A&M University, Agricultural and Food Policy Center.
    3. Nikolinka G. Koleva & Uwe a Schneider & Richard S.J. Tol, "undated". "The impact of weather variability and climate change on pesticide applications in the US - An empirical investigation," Working Papers FNU-171, Research unit Sustainability and Global Change, Hamburg University.
    4. Jules Pretty & Craig Brett & David Gee & Rachel Hine & Chris Mason & James Morison & Matthew Rayment & Gert Van Der Bijl & Thomas Dobbs, 2001. "Policy Challenges and Priorities for Internalizing the Externalities of Modern Agriculture," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 44(2), pages 263-283.
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    Cited by:

    1. Yuquan W. Zhang & Bruce A. McCarl & Yibo Luan & Ulrich Kleinwechter, 2018. "Climate change effects on pesticide usage reduction efforts: a case study in China," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 23(5), pages 685-701, June.
    2. Elena Tamburini & Paola Pedrini & Maria Gabriella Marchetti & Elisa Anna Fano & Giuseppe Castaldelli, 2015. "Life Cycle Based Evaluation of Environmental and Economic Impacts of Agricultural Productions in the Mediterranean Area," Sustainability, MDPI, vol. 7(3), pages 1-21, March.
    3. Bruce A McCarl & Thomas W Hertel, 2018. "Climate Change as an Agricultural Economics Research Topic," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 40(1), pages 60-78.
    4. Cheng, Muxi & McCarl, Bruce A. & Fei, Chengcheng, 2023. "Climate Change Impact on Pesticide Cost in the U.S," 2023 Annual Meeting, July 23-25, Washington D.C. 335933, Agricultural and Applied Economics Association.

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