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An Analysis of the Impact of a Ban of Methyl Bromide on the U.S. Winter Fresh Vegetable Market

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  • Deepak, M. S.
  • Spreen, Thomas H.
  • VanSickle, John J.

Abstract

This study evaluates the economic impact of a ban on methyl bromide on the U.S. winter fresh vegetable market for six major crops: tomatoes, green peppers, cucumbers, squash, eggplant, and watermelons. Florida is the primary domestic supplier of these products. Mexico and Texas are the competing suppliers of the five vegetable crops and peppers, respectively. Leontief technologies represent both monocrop and double-crop production systems; linear inverse demand functions represent four demand regions in the U.S. and Canada. By increasing production costs and reducing yields, a ban on methyl bromide decreases Florida's FOB revenues by 54% and increases those of Mexico by 65%. Price increases to U.S. fresh vegetable consumers range from near zero to over 10%, depending upon the commodity and location.

Suggested Citation

  • Deepak, M. S. & Spreen, Thomas H. & VanSickle, John J., 1996. "An Analysis of the Impact of a Ban of Methyl Bromide on the U.S. Winter Fresh Vegetable Market," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 28(2), pages 433-443, December.
    • Handle: RePEc:cup:jagaec:v:28:y:1996:i:02:p:433-443_00
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    References listed on IDEAS

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    1. Spreen, Thomas H., 2006. "Price Endogenous Mathematical Programming Models and Trade Analysis," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 38(2), pages 1-5, August.
    2. Bruce A. McCarl & Thomas H. Spreen, 1980. "Price Endogenous Mathematical Programming As a Tool for Sector Analysis," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 62(1), pages 87-102.
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    Cited by:

    1. Fairchild, Gary F. & Taylor, Timothy G. & Wahl, Thomas I., 1997. "Policy Harmonization, Convergence, And Compatibility Issues In North American Horticulture," Proceedings of the 3rd Agricultural and Food Policy Systems Information Workshop, 1997: Harmonization\Convergence\Compatibility in Agriculture and Agri-Food Policy: Canada, United States and Mexico 16898, Farm Foundation, Agricultural and Food Policy Systems Information Workshops.
    2. Lynch, Lori & Malcolm, Scott A. & Zilberman, David, 2005. "Effect of a Differentially Applied Environmental Regulation on Agricultural Trade Patterns and Production Location: The Case of Methyl Bromide," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 34(1), pages 1-21, April.
    3. NINGHUI Li, 2010. "Economic Impact of Banning Methyl Bromide," EcoMod2003 330700113, EcoMod.
    4. Byrd, Mark & Escalante, Cesar & Fonsah, Esendugue & Wetzstein, Michael, 2006. "Financial Efficiency of Methyl Bromide Alternatives for Georgia's Bell Pepper Industries," Journal of the ASFMRA, American Society of Farm Managers and Rural Appraisers, vol. 2006, pages 1-9.
    5. Lynch, Lori & Carpenter, Janet, 2001. "The Impacts Of Allocation Strategies For Spatially Regulated Chemical Use," Working Papers 28576, University of Maryland, Department of Agricultural and Resource Economics.

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