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Replacement Of Price Support Measures By Direct Payments In Agricultural Policies: Does This Benefit The Environment? The Effects Of The Post-1992 Cap On Pest Control In The E.U

Author

Listed:
  • Serra, Teresa
  • Zilberman, David
  • Goodwin, Barry K.
  • Hyvonen, Keijo

Abstract

The objective of this research is to determine the contribution of recent agricultural policy reforms in the E.U. on the use of crop protection products. Specifically, we concentrate on the 1992 CAP reforms. Our theoretical model adopts the multi-output generalization of the Lichtenberg-Zilberman damage control technology model developed by Chambers and Lichtenberg. In the empirical application, farm-level data for a sample of French farms are utilized. Results suggest that price effects on the usage of crop protection products are always more elastic than the compensatory payment effects. This result indicates that a policy reform consisting of a reduction in price-support measures in favor of direct payments to farmers, such as the 1992 CAP reform, involves a certain degree of agricultural policy decoupling and may result in a reduction in the usage of crop protection products.

Suggested Citation

  • Serra, Teresa & Zilberman, David & Goodwin, Barry K. & Hyvonen, Keijo, 2004. "Replacement Of Price Support Measures By Direct Payments In Agricultural Policies: Does This Benefit The Environment? The Effects Of The Post-1992 Cap On Pest Control In The E.U," 2004 Annual meeting, August 1-4, Denver, CO 20043, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  • Handle: RePEc:ags:aaea04:20043
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    File URL: http://ageconsearch.umn.edu/record/20043/files/sp04se09.pdf
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    References listed on IDEAS

    as
    1. Hanley, Nick, 1990. "The Economics of Nitrate Pollution," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 17(2), pages 129-151.
    2. Sckokai, Paolo & Moro, Daniele, 2002. "Modelling The Cap Arable Crop Regime Under Uncertainty," 2002 Annual meeting, July 28-31, Long Beach, CA 19860, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    3. Just, Richard E & Antle, John M, 1990. "Interactions between Agricultural and Environmental Policies: A Conceptual Framework," American Economic Review, American Economic Association, vol. 80(2), pages 197-202, May.
    4. Bruce A. Babcock & Erik Lichtenberg & David Zilberman, 1992. "Impact of Damage Control and Quality of Output: Estimating Pest Control Effectiveness," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 74(1), pages 163-172.
    5. Euan Phimister, 1995. "Farm Household Production In The Presence Of Restrictions On Debt: Theory And Policy Implications," Journal of Agricultural Economics, Wiley Blackwell, vol. 46(3), pages 371-380.
    6. Erik Lichtenberg & David Zilberman, 1986. "The Econometrics of Damage Control: Why Specification Matters," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 68(2), pages 261-273.
    7. Gardner, Bruce L, 1992. "Changing Economic Perspectives on the Farm Problem," Journal of Economic Literature, American Economic Association, vol. 30(1), pages 62-101, March.
    8. Vincent H. Smith & Barry K. Goodwin, 1996. "Crop Insurance, Moral Hazard, and Agricultural Chemical Use," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(2), pages 428-438.
    9. Richard E. Just & David Zilberman & Eithan Hochman, 1983. "Estimation of Multicrop Production Functions," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 65(4), pages 770-780.
    10. Guyomard, Herve & Baudry, Marc & Carpentier, Alain, 1996. "Estimating Crop Supply Response in the Presence of Farm Programmes: Application to the CAP," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 23(4), pages 401-420.
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