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Agriculture 2018, 8(4), 53; https://doi.org/10.3390/agriculture8040053

Assessing the Economic Impacts of Pesticide Regulations

1
Research Unit Sustainability and Global Change, Department of Geosciences, Center for Earth System Research and Sustainability, University of Hamburg, 20144 Hamburg, Germany
2
Department of Agricultural Economics, Texas A&M University, College Station, TX 77843-2124, USA
*
Author to whom correspondence should be addressed.
Received: 14 March 2018 / Revised: 14 March 2018 / Accepted: 29 March 2018 / Published: 3 April 2018
(This article belongs to the Special Issue Pesticides in Agriculture System)
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Abstract

Economic impacts of pesticide regulations are assessed using five alternative methodologies. The regulations include crop supply-enhancing eradication programs and crop supply-decreasing pesticide bans. Alternative assessment methodologies differ regarding assumptions about market price and crop acreage adjustments. Results show that market and producer adjustments substantially impact conclusions about winners and losers from regulations, and estimated welfare effects can differ widely between the different methodologies. For small technological changes such as the hypothetical pendimethalin regulation, farm budgeting and sector modeling yield similar estimates. For more severe technological changes—like the boll weevil eradication program—simple budgeting approaches lead to a substantial bias. View Full-Text
Keywords: pest control; pesticide ban; insect eradication; farm income; agricultural sector analysis pest control; pesticide ban; insect eradication; farm income; agricultural sector analysis
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Schneider, U.A.; Rasche, L.; McCarl, B.A. Assessing the Economic Impacts of Pesticide Regulations. Agriculture 2018, 8, 53.

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