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Quality-Adjusted Price and Quantity Indices for Pesticides

Author

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  • Jorge Fernandez-Cornejo
  • Sharon Jans

Abstract

Quality-adjusted price indices are calculated for pesticides used on major crops in U.S. agriculture for 1967–92 using hedonic methods. Pesticide potency, hazardous characteristics, and persistence in the environment are used as quality characteristics. Separate hedonic functions are estimated for pesticides by end-use (crop) and major pesticide class. Price indices are aggregated using chained Tornqvist indices. Adjusted quantity indices are computed using pesticide expenditures. The adjusted price index rose steadily, reaching in 1992 around 2.5 times the level of 1968. Pesticide use at constant quality peaked in 1981 at a level substantially higher than the peak reached by the unadjusted index.

Suggested Citation

  • Jorge Fernandez-Cornejo & Sharon Jans, 1995. "Quality-Adjusted Price and Quantity Indices for Pesticides," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 77(3), pages 645-659.
    • Handle: RePEc:oup:ajagec:v:77:y:1995:i:3:p:645-659.
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    File URL: http://hdl.handle.net/10.2307/1243232
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    Cited by:

    1. Fernandez-Cornejo, Jorge & Valle, Karen, 2014. "A Hedonic Model of Corn Seed Prices," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 169667, Agricultural and Applied Economics Association.
    2. Getu Hailu & John Cranfield & Rawlin Thangaraj, 2010. "Do U.S. food processors respond to sweetener-related health information?," Agribusiness, John Wiley & Sons, Ltd., vol. 26(3), pages 348-368.
    3. Fernandez-Cornejo, Jorge, 1998. "Environmental and economic consequences of technology adoption: IPM in viticulture," Agricultural Economics, Blackwell, vol. 18(2), pages 145-155, March.
    4. Lichtenberg, Erik, 2002. "Agriculture and the environment," Handbook of Agricultural Economics, in: B. L. Gardner & G. C. Rausser (ed.), Handbook of Agricultural Economics, edition 1, volume 2, chapter 23, pages 1249-1313, Elsevier.
    5. Zilberman, David & Millock, Katti, 1997. "Financial incentives and pesticide use," Food Policy, Elsevier, vol. 22(2), pages 133-144, April.
    6. Fernandez-Cornejo, Jorge & Li, Jiayi, 2005. "The Impacts of Adopting Genetically Engineered Crops in the USA: The Case of Bt Corn," 2005 Annual meeting, July 24-27, Providence, RI 19318, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    7. Biram, Hunter D. & Tack, Jesse & Nehring, Richard F., 2022. "Does Crop Insurance Participation Impact Quality-Adjusted Pesticide Usage?," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322136, Agricultural and Applied Economics Association.
    8. Figueroa, Enrique E., 1996. "The Competitiveness of Mexican and Caribbean Basin Horticultural Products in the U.S. Market," Staff Papers 121181, Cornell University, Department of Applied Economics and Management.
    9. Morrison Paul, Catherine J. & Ball, V. Eldon & Felthoven, Ronald G. & Nehring, Richard F., 2000. "Effective Costs And Chemical Use In U.S. Agricultural Production: Benefits And Costs Of Using The Environment As A "Free" Input," Working Papers 11986, University of California, Davis, Department of Agricultural and Resource Economics.
    10. Sung, Jae-hoon & Miranowski, John A., 2016. "Information technologies and field-level chemical use for corn production," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235858, Agricultural and Applied Economics Association.
    11. Fernandez-Cornejo, Jorge & Hallahan, Charles B. & Nehring, Richard F. & Wechsler, Seth James & Grube, Arthur, 2010. "Conservation Tillage, Pesticide Use, and Biotech Crops in the U.S.A," 2010 Annual Meeting, July 25-27, 2010, Denver, Colorado 60941, Agricultural and Applied Economics Association.
    12. Fernandez-Cornejo, Jorge & Nehring, Richard F. & Newcomb Sinha, Elizabeth & Grube, Arthur & Vialou, Alexandre, 2009. "Assessing Recent Trends in Pesticide Use in U.S. Agriculture," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 49271, Agricultural and Applied Economics Association.
    13. Nehring, Richard F. & Ball, V. Eldon & Breneman, Vincent E., 2002. "Land Quality in an International Comparison: It's Importance in Measuring Productivity," 2002 International Congress, August 28-31, 2002, Zaragoza, Spain 24910, European Association of Agricultural Economists.
    14. Zhigang WANG & Shi ZHENG & H. Holly WANG & S. LIANG, 2010. "Determinants of agricultural chemical price in China's export-oriented vegetable production area," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 56(1), pages 32-42.
    15. Zyamalov, V. & Turuntseva, M., 2024. "The influence of goods' quality on their price indices," Journal of the New Economic Association, New Economic Association, vol. 62(1), pages 196-209.
    16. Fernandez-Cornejo, Jorge & Nehring, Richard & Osteen, Craig & Wechsler, Seth James & Martin, Andrew & Vialou, Alex, 2014. "Pesticide Use in U.S. Agriculture: 21 Selected Crops, 1960-2008," Economic Information Bulletin 178462, United States Department of Agriculture, Economic Research Service.
    17. Fadhuile, A., 2018. "Can we explain pesticide price trend by the regulation changes ?," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277112, International Association of Agricultural Economists.
    18. Hasing, Tomas & Carpio, Carlos E. & Willis, David B. & Sydorovych, Olha & Marra, Michele C., 2010. "The Effect of Label Information on Farmers’ Pesticide Choice," 2010 Annual Meeting, July 25-27, 2010, Denver, Colorado 61131, Agricultural and Applied Economics Association.

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