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Impacts of price and exchange rate policies on pesticide use in the Philippines

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  • Jessica D. Tjornhom
  • George W. Norton
  • Victor Gapud

Abstract

Pesticide prices can influence producer decisions to apply pesticides as opposed to nonchemical means of pest control. Those prices are are turn influenced by price and exchange rate policies. The effective rate of protection for nine pesticides commonly applied to vegetables in the Philippines was calculated to determine whether government policies are creating incentives or disincentives to adopt more integrated pest management methods. Calculations found that direct price policies, primarily through an import tariff, tax pesticide use while an overvalued exchange rate subsidizes pesticide use. The net effect is a 6 to 8% pesticide subsidy. This subsidy results in economic surplus gains to vegetable producers and consumers when negative externalities associated with pesticide use are not accounted for. However, recent analysis of human health effects of pesticide use on rice in the Philippines demonstrates that these externalities can be substantial.

Suggested Citation

  • Jessica D. Tjornhom & George W. Norton & Victor Gapud, 1998. "Impacts of price and exchange rate policies on pesticide use in the Philippines," Agricultural Economics, International Association of Agricultural Economists, vol. 18(2), pages 167-175, March.
    • Handle: RePEc:bla:agecon:v:18:y:1998:i:2:p:167-175
    DOI: 10.1111/j.1574-0862.1998.tb00496.x
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    Cited by:

    1. Coxhead, Ian A. & Rola, Agnes, 1999. "Do National Markets And Price Policies Affect Land Use At The Forest Margin? Evidence From The Philippines," Staff Papers 12602, University of Wisconsin-Madison, Department of Agricultural and Applied Economics.

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