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Pesticide And Greenhouse Gas Externalities From Us Agriculture — The Impact Of Their Internalization And Climate Change

Author

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  • NIKOLINKA SHAKHRAMANYAN

    (Institute of Ethics and Transdisciplinary Sustainability Research, University of Lüneburg, Scharnhorststraße 1, 21335 Lüneburg, Germany)

  • UWE A. SCHNEIDER

    (Sustainability and Global Change Research Unit, Centre for Marine and Atmospheric Science, Hamburg University, ZMK Grindelberg 5, 20144 Hamburg, Germany)

  • BRUCE A. McCARL

    (Department of Agricultural Economics, Texas A&M University, College Station, TX 77843-2124, USA)

Abstract

Climate change may affect the use of pesticides and their associated environmental and human health impacts. This study employs and modifies a partial equilibrium model of the US agricultural sector to examine the effects of alternative regulations of the pesticide and greenhouse gas emission externality. Simulation results indicate that without pesticide externality regulations and low greenhouse gas emission mitigation strategy, climate change benefits from increased agricultural production in the US are more than offset by increased environmental costs. Although the combined regulation of pesticide and greenhouse gas emission externalities increases farmers' production costs, their net income effects are positive because of price adjustments and associated welfare shifts from consumers to producers. The results also show heterogeneous impacts on preferred pest management intensities across major crops. While pesticide externality regulations lead to substantial increases in total water use, climate policies induce the opposite effect.

Suggested Citation

  • NIKOLINKA SHAKHRAMANYAN & UWE A. SCHNEIDER & BRUCE A. McCARL, 2013. "Pesticide And Greenhouse Gas Externalities From Us Agriculture — The Impact Of Their Internalization And Climate Change," Climate Change Economics (CCE), World Scientific Publishing Co. Pte. Ltd., vol. 4(03), pages 1-28.
    • Handle: RePEc:wsi:ccexxx:v:04:y:2013:i:03:n:s2010007813500085
    DOI: 10.1142/S2010007813500085
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    References listed on IDEAS

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    1. Knutson, Ronald D. & Hall, Charles R. & Smith, Edward G. & Cotner, Sam & Miller, John W., 1994. "Yield and cost impacts of reduced pesticide use on fruits and vegetables," Choices: The Magazine of Food, Farm, and Resource Issues, Agricultural and Applied Economics Association, vol. 9(1), pages 1-5.
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