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

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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. Copyright 2005 American Agricultural Economics Association.

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APA

Serra, T., Zilberman, D., Goodwin, B. K., & Hyvonen, K. (2005). Replacement of agricultural price supports by area payments in the European union and the effects on pesticide use. American Journal of Agricultural Economics, 87(4), 870–884. https://doi.org/10.1111/j.1467-8276.2005.00775.x

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