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Nonpoint Pollution, Weeds And Risk

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  • David W. Archer
  • Jason F. Shogren

Abstract

Nonpoint pollution from agricultural production continues to force regulators to rethink policies aimed at reducing input sources such as herbicides and fertilisers. This paper considers how a producer's choice of an input strategy defined by application rate or persistence affects input‐use patterns, and consequently, nonpoint pollution. Working within an endogenous risk framework, we explore how input sets with herbicides defined either as self‐insurance or self‐protection are affected by increased risk of herbicide treatment failure. Our results suggest that increased risk will generally decrease both herbicide and fertiliser application rates, resulting in the use of less flexible and less persistent herbicides. In addition, a quantity constraint policy restricting the amount of herbicide applied will decrease the amount of fertiliser applied.

Suggested Citation

  • David W. Archer & Jason F. Shogren, 1994. "Nonpoint Pollution, Weeds And Risk," Journal of Agricultural Economics, Wiley Blackwell, vol. 45(1), pages 38-51, January.
    • Handle: RePEc:bla:jageco:v:45:y:1994:i:1:p:38-51
    DOI: 10.1111/j.1477-9552.1994.tb00376.x
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    References listed on IDEAS

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    1. D. J. Pannell, 1990. "Responses To Risk In Weed Control Decisions Under Expected Profit Maximisation," Journal of Agricultural Economics, Wiley Blackwell, vol. 41(3), pages 391-401, September.
    2. Shogren, Jason F. & Crocker, Thomas D., 1991. "Risk, self-protection, and ex ante economic value," Journal of Environmental Economics and Management, Elsevier, vol. 20(1), pages 1-15, January.
    3. Ehrlich, Isaac & Becker, Gary S, 1972. "Market Insurance, Self-Insurance, and Self-Protection," Journal of Political Economy, University of Chicago Press, vol. 80(4), pages 623-648, July-Aug..
    4. Bouzaher, Aziz & Archer, David & Cabe, Richard & Carriquiry, Alicia L. & Shogren, Jason F., 1992. "Effects of Environmental Policy on Trade-Offs in Agri-Chemical Management," Staff General Research Papers Archive 565, Iowa State University, Department of Economics.
    5. James S. Shortle & James W. Dunn, 1986. "The Relative Efficiency of Agricultural Source Water Pollution Control Policies," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 68(3), pages 668-677.
    6. Aziz Bouzaher & Richard Cabe & Alicia L. Carriquiry & Philip W. Gassman & P. G. Lakshminarayan & Jason F. Shogren, 1992. "Metamodels and Nonpoint Pollution Policy in Agriculture," Center for Agricultural and Rural Development (CARD) Publications 92-wp97, Center for Agricultural and Rural Development (CARD) at Iowa State University.
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    Cited by:

    1. Archer, David W. & Shogren, Jason F., 1996. "Endogenous risk in weed control management," Agricultural Economics, Blackwell, vol. 14(2), pages 103-122, July.
    2. Alfons Weersink & John R. Livernois & Jason F. Shogren & James S. Shortle, 1998. "Economic Instruments and Environmental Policy in Agriculture," Canadian Public Policy, University of Toronto Press, vol. 24(3), pages 309-327, September.

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