EEP101_20 - Pesticide Economics David Zilberman EEP...

Info iconThis preview shows pages 1–8. Sign up to view the full content.

View Full Document Right Arrow Icon
04/29/09 Pesticide Economics David Zilberman EEP 101/Econ 125: Spring 2003
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
04/29/09 General Overview There are three major classes of pesticides: Insecticides Fungicides Herbicides Pesticides are useful in controlling agricultural pests. The adverse human health effects of pesticides tend to depend on the similarity between human biology and the target pest: That is, a “monkeycide” would be worse for human health than a “raticide.” Fungicides are generally worse for human consumption than insecticides.
Background image of page 2
04/29/09 Pesticides: Damage Control Agents Pests include: Big animals (elephants, coyotes) Small creatures (mice, birds) Insects Viruses Weed Control types--Chemical Agronomic: fences,hoes, tractors, traps Biological: cats, dogs, predators of pests Seed varieties including genetically modified crops: pest resistant, pesticides tolerant
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
04/29/09 Changes in Pesticide Use in the U.S.
Background image of page 4
04/29/09 A Brief History of Pesticide Use Herbicides: From 1965 to 1980, growth in the relative price of labor increased the use of herbicide as a factor of production. This occurred because herbicide is a substitute for labor-intensive work. During the 1980s, lower agricultural commodity prices and reduced crop acreage led to a reduction in herbicide use. Insecticides: During the 1970’s, the creation of the EPA and an increase in energy prices led to a reduction in insecticide use. Fungicide: Fungicide use has remained relatively stable over the past 30 years, although recent legislation banning the use of carcinogenic chemicals in the Delaney Clause will soon outlaw many fungicides (and several popular insecticides and herbicides).
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
04/29/09 Modeling Pest-Control Choices Y = OUTPUT Z = INPUT (fertilizer) Q = g(Z) - potential output X = pesticides-damage control agent d(N) = fraction damaged, N = final pest population N = h(X, M) M = initial pest population, pesticides reduce population from M to N Y = g(Z)*(1 - d(h(X)) Firms aim to maximize profits P = output price, W = input price, V = pest-control price A = fixed application cost Profit = Pg(Z)*(1 - d(h(X,M)) - Z*W - V*X - A
Background image of page 6
Pest Population and Pest Control At optimal solution VMPZ = P(∂g/ ∂ Z) *(1 - d(n(X,M)) = W. Value of marginal product of input = input price. VMPX= -P g(Z)* d/ ∂N * n/ ∂X = V. Value of marginal product of pest control = its price. Larger initial population requires more application. If initial population is sufficiently small and does not cover fixed application cost, do not apply. Application is warranted if a population threshold has exceeded. Apply only if M > threshold. Estimation population is costly.
Background image of page 7

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 8
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 42

EEP101_20 - Pesticide Economics David Zilberman EEP...

This preview shows document pages 1 - 8. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online