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Revisiting Pesticide Taxation Schemes

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  • Finger, Robert
  • Möhring, Niklas
  • Dalhaus, Tobias
  • Böcker, Thomas

Abstract

The risks caused by pesticide use for human health and nature are one of the major challenges for agricultural policies. Despite their high potential to contribute to better policies, economic instruments such as pesticide taxes are rarely used in the current policy mix. In this essay, we combine current discussion on pesticide policies in European countries with new insights from recent economic research to provide an outline for better pesticide policies to policy makers and stakeholders. We show that differentiated taxation schemes have a high potential to reduce risks caused by pesticide use and that the targeted re-distribution of tax revenues in the agricultural sector is crucial to create leverage effects on pesticide use and to increase the acceptability of pesticide taxes.

Suggested Citation

  • Finger, Robert & Möhring, Niklas & Dalhaus, Tobias & Böcker, Thomas, 2017. "Revisiting Pesticide Taxation Schemes," Ecological Economics, Elsevier, vol. 134(C), pages 263-266.
    • Handle: RePEc:eee:ecolec:v:134:y:2017:i:c:p:263-266
    DOI: 10.1016/j.ecolecon.2016.12.001
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    2. Carpentier, A. & Reboud, X., 2018. "Why farmers consider pesticides the ultimate in crop protection: economic and behavioral insights," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277528, International Association of Agricultural Economists.
    3. Wuepper, David & Roleff, Nikolaus & Finger, Robert, 2021. "Does it matter who advises farmers? Pest management choices with public and private extension," Food Policy, Elsevier, vol. 99(C).
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    5. Salomé Kahindo & Stéphane Blancard, 2022. "Reducing pesticide use through optimal reallocation at different spatial scales: The case of French arable farming," Agricultural Economics, International Association of Agricultural Economists, vol. 53(4), pages 648-666, July.
    6. Geoffroy Enjolras & Magali Aubert, 2018. "Does crop insurance lead to better environmental practices? Evidence from French farms," Post-Print hal-02048349, HAL.
    7. Bontemps, Christophe & Bougherara, Douadia & Nauges, Céline, 2020. "Do Risk Preferences Really Matter? The Case of Pesticide Use in Agriculture," TSE Working Papers 20-1095, Toulouse School of Economics (TSE).
    8. Geoffroy Enjolras & Magali Aubert, 2020. "How does crop insurance influence pesticide use? Evidence from French farms," Review of Agricultural, Food and Environmental Studies, Springer, vol. 101(4), pages 461-485, December.
    9. Chelsea, Chelsea & Espinola-Arredondo, Ana, 2022. "Fungicide Resistance and Misinformation: A Game Theoretic Approach," Working Papers 2020-4, School of Economic Sciences, Washington State University, revised 06 Feb 2021.
    10. Chelsea A. Pardini & Ana Espínola‐Arredondo, 2023. "Fungicide resistance and misinformation: A game theoretic approach," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 71(2), pages 171-201, June.
    11. Alessandro Bonanno & Valentina C. Materia & Thomas Venus & Justus Wesseler, 2017. "The Plant Protection Products (PPP) Sector in the European Union: A Special View on Herbicides," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 29(3), pages 575-595, July.
    12. Matthias Buchholz & Oliver Musshoff, 2021. "Tax or green nudge? An experimental analysis of pesticide policies in Germany [A psychological study of the inverse relationship between perceived risk and perceived benefit]," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 48(4), pages 940-982.
    13. Amalie Bjørnåvold & Maia David & Vincent Mermet-Bijon & Olivier Beaumais & Romain Crastes Dit Sourd & Steven van Passel & Vincent Martinet, 2023. "To tax or to ban? A discrete choice experiment to elicit public preferences for phasing out glyphosate use in agriculture [Taxer ou interdire ? Une expérience de choix discret pour obtenir les préf," Post-Print hal-04057671, HAL.
    14. Diendéré, Achille & Nguyen, Geneviève & Del Corso, Jean-Pierre & Kephaliacos, Charilaos, 2018. "Modeling the Relationship Between Pesticide Use and Farmers' Beliefs about Water Pollution in Burkina Faso," Ecological Economics, Elsevier, vol. 151(C), pages 114-121.
    15. Robert Finger, 2023. "Digital innovations for sustainable and resilient agricultural systems," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 50(4), pages 1277-1309.
    16. Faure, Jérôme & Mouysset, Lauriane & Gaba, Sabrina, 2023. "Combining incentives with collective action to provide pollination and a bundle of ecosystem services in farmland," Ecosystem Services, Elsevier, vol. 63(C).
    17. Hennessy, David A., 2018. "Managing Derived Demand For Antibiotics In Animal Agriculture," 2018 Annual Meeting, August 5-7, Washington, D.C. 274359, Agricultural and Applied Economics Association.
    18. Finger, Robert & Möhring, Niklas, 2022. "The adoption of pesticide-free wheat production and farmers' perceptions of its environmental and health effects," Ecological Economics, Elsevier, vol. 198(C).
    19. Daniel Slunge & Francisco Alpizar, 2019. "Market-Based Instruments for Managing Hazardous Chemicals: A Review of the Literature and Future Research Agenda," Sustainability, MDPI, vol. 11(16), pages 1-20, August.
    20. Böcker, Thomas & Möhring, Niklas & Finger, Robert, 2019. "Herbicide free agriculture? A bio-economic modelling application to Swiss wheat production," Agricultural Systems, Elsevier, vol. 173(C), pages 378-392.
    21. Valborg Kvakkestad & Åsmund Lægreid Steiro & Arild Vatn, 2021. "Pesticide Policies and Farm Behavior: The Introduction of Regulations for Integrated Pest Management," Agriculture, MDPI, vol. 11(9), pages 1-17, August.
    22. Nielsen, Helle Ørsted & Konrad, Maria Theresia Hedegaard & Pedersen, Anders Branth & Gyldenkærne, Steen, 2023. "Ex-post evaluation of the Danish pesticide tax: A novel and effective tax design," Land Use Policy, Elsevier, vol. 126(C).
    23. Engist, Dennis & Finger, Robert & Knaus, Peter & Guélat, Jérôme & Wuepper, David, 2023. "Agricultural systems and biodiversity: evidence from European borders and bird populations," Ecological Economics, Elsevier, vol. 209(C).
    24. Pardini, Chelsea A. & Espinola-Arredondo, Ana, 2020. "Facing Fungicide Resistance in Grape Production: A Game Theoretic Approach," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304309, Agricultural and Applied Economics Association.
    25. Qizheng He & Yong Sun & Maoan Yi, 2023. "Evolutionary Game of Pesticide Reduction Management for Sustainable Agriculture: An Analysis Based on Local Governments, Farmers, and Consumers," Sustainability, MDPI, vol. 15(12), pages 1-19, June.

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    More about this item

    Keywords

    Pesticide; Tax; Incentive; Environment; Regulation;
    All these keywords.

    JEL classification:

    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q52 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Pollution Control Adoption and Costs; Distributional Effects; Employment Effects
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies

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