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Dead weight loss associated with economic efficiency use of pesticides in Indonesian rice production

Author

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  • Joko Mariyono

    (Department of Economics, Universitas Pancasakti, Tegal, Indonesia)

Abstract

This paper analysis the efficient use of pesticides by internalizing the costs of externality, and estimates the monetary value of welfare loss. The benefit of pesticide use is estimated using a production function, and the economic value of the adverse impact on human health and the environment are represented by a health cost and consumers? willingness to pay for a kg reduction in pesticide use. To estimate the benefit of pesticides, the paper uses farm level crosssectional and time series data set on rice production. The results indicate low efficiency of using pesticide. This means that totally banning the use of pesticides is economically inefficient.

Suggested Citation

  • Joko Mariyono, 2014. "Dead weight loss associated with economic efficiency use of pesticides in Indonesian rice production," Economic Journal of Emerging Markets, Universitas Islam Indonesia, vol. 6(2), pages 69-84, April.
    • Handle: RePEc:uii:journl:v:6:y:2014:i:2:p:69-84
    DOI: http://dx.doi.org/10.20885/ejem.vol6.iss2.art1
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    References listed on IDEAS

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    7. Lauren Kelly, 2005. "The Global Integrated Pest Management Facility," World Bank Publications - Books, The World Bank Group, number 19053.
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    Cited by:

    1. Joko Mariyono, 2018. "Decomposition total factor productivity of Indonesian rice production," Economic Journal of Emerging Markets, Universitas Islam Indonesia, vol. 10(2), pages 121-127, Oktober.

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    More about this item

    Keywords

    Externalities; welfare; rice; farm; dead weight loss;
    All these keywords.

    JEL classification:

    • Q11 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Aggregate Supply and Demand Analysis; Prices
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance

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