Replacement of Agricultural Price Supports By Area Payments in the European Union and the Effects on Pesticide Use

Posted: 16 Feb 2007

See all articles by Teresa Serra

Teresa Serra

affiliation not provided to SSRN

Barry K. Goodwin

North Carolina State University

Keijo Hyvonen

European Commission - Agriculture Directorate

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.

Suggested Citation

Serra, Teresa and Goodwin, Barry K. and Hyvonen, Keijo, Replacement of Agricultural Price Supports By Area Payments in the European Union and the Effects on Pesticide Use. American Journal of Agricultural Economics, Vol. 87, No. 4, pp. 870-884, November 2005, Available at SSRN: https://ssrn.com/abstract=963670 or http://dx.doi.org/10.1111/j.1467-8276.2005.00775.x

Teresa Serra

affiliation not provided to SSRN

Barry K. Goodwin (Contact Author)

North Carolina State University ( email )

Box 8109
324 C Nelson
Raleigh, NC 27695-8109
United States
919-515-4547 (Phone)
919-515-1824 (Fax)

Keijo Hyvonen

European Commission - Agriculture Directorate ( email )

Rue de la Loi 200
Brussels, B-1049
Belgium

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