Replacement of agricultural price supports by area payments in the European union and the effects on pesticide use

Teresa Serra, David Zilberman, Barry K. Goodwin, Keijo Hyvonen

Research output: Contribution to journalArticlepeer-review

Abstract

This article determines the contribution of recent European Union agricultural policy reforms on the use of pesticides. Our theoretical model extends the multioutput generalization of the Lichtenberg-Zilberman damage control technology model developed by Chambers and Lichtenberg. Our empirical analysis uses farm-level data for a sample of French farms. Results suggest that price effects on the use of pesticides are always more elastic than area payment effects. This indicates that policy reforms consisting of a reduction in price supports in favor of area payments, may reduce application of crop protection inputs. Such policy changes, which represent a certain degree of decoupling, took place under the 1992 Common Agricultural Policy reforms.

Original languageEnglish (US)
Pages (from-to)870-884
Number of pages15
JournalAmerican Journal of Agricultural Economics
Volume87
Issue number4
DOIs
StatePublished - Nov 2005
Externally publishedYes

Keywords

  • Common agricultural policy
  • Crop protection inputs
  • Elasticity of input use
  • Partially decoupled policy
  • Pesticide use

ASJC Scopus subject areas

  • Agricultural and Biological Sciences (miscellaneous)
  • Economics and Econometrics

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