Hostname: page-component-78c5997874-dh8gc Total loading time: 0 Render date: 2024-11-13T10:17:57.388Z Has data issue: false hasContentIssue false
  • English
  • Français

Regulation in Quality Differentiated Markets: Pesticide Cancellations in U.S. Apple Production

Published online by Cambridge University Press:  28 April 2015

Jutta Roosen
Jutta Roosen*
Affiliation:
Catholic University of Louvain, Belgium
Get access Rights & Permissions [Opens in a new window]

Abstract

If agricultural output results from non-separable multiproduct technologies, environmental regulation can change the set of possible output combinations. This will be important when regulation affects the quality composition of a crop. As a result, market and welfare changes have to be assessed in technology-related markets. We present a model that serves to estimate the economic impacts in such instances and use it in the assessment of pesticide regulation in the U.S. apple industry. Impacts for four pesticide cancellation scenarios are assessed. It is shown that changes in the quality of a crop lead to significant market reallocation effects.

Keywords

apple productionjoint productionmultiproduct firmpesticide cancellationwelfare assessment
Type
Articles
Information
Journal of Agricultural and Applied Economics , Volume 33 , Issue 1 , April 2001 , pp. 117 - 133
Copyright
Copyright © Southern Agricultural Economics Association 2001

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Babcock, B.A. “The Value of Weather Information in Market Equilibrium.” Amer. J. Agrie. Econ. 72(February 1990): 63–72.CrossRefGoogle Scholar
Blend, J.R. and van Ravenswaay, E.O. “Measuring Consumer Demand for Ecolabeled Apples.” Amer. J. Agr. Econ. 81(December 1999): 107–277.CrossRefGoogle Scholar
Buzby, J.C. and Spreen, T.H. “The Impacts on the U.S. Grapefruit Industry of Banning the Pesticide Sodium Ortho-Phenylphenate.” Amer. J. Agr. Econ. 76(December 1994): 12–62.Google Scholar
Clark, S. and Burkhart, D.. Enterprise Budget: Apples Delicious: North Central Region. Oregon. State University, EM 8491, Jan. 1992.Google Scholar
Cropper, M.L., Evans, W.N., Berard, S.J., Ducla-Soares, M.M., and Portney, P.R. “The Determinants of Pesticide Regulation: A Statistical Analysis of EPA Decision Making.” J. Polit. Econ. 100(February 1992): 175-97.CrossRefGoogle Scholar
Davis, R.M., Hamilton, G., Osteen, C., Lanini, W.T., and Spreen, T.H.. The Importance of Pesticides and Other Pest Management Practices In U.S. Tomato Production. A Special Funded Project of the United States Department of Agriculture, National Agricultural Pesticide Impact Assessment Program, Document Number 1-CA-98, 1998.Google Scholar
Derr, J. “Biological Assessment of Herbicide Use in Apple Production.” Unpublished Manuscript, Virginia Tech, and State University, 1999.Google Scholar
Funt, R.C., Baugher, T.A., Hogmire, H.W., and Kleiner, W.C.. Profitability of Different Apple Orchard Systems in the Eastern United States. Ohio Agrie. Research & Dev. Center. Horticulture Department Series 624, March 1992, Wooster, Ohio.Google Scholar
Griffiths, W. and Zhao, X. “A Unified Approach to Sensitivity Analysis in Equilibrium Displacement Models: Comment.” Amer. J. Agrie. Econ. 82(February 2000): 236-40.CrossRefGoogle Scholar
Hinman, H.R., Tvergyak, P., Peterson, B., and Clements, M.. 1992 Estimated Cost of Producing Red Delicious Apples in Central Washington. Farm Business Management Reports. EB 1720. Coop. Ext. Service. Washington State University. Pullman, WA, 1992.Google Scholar
Hubbel, B.J. and Carlson, G.A. “Effects of Insecticide Attributes on Within-Season Insecticide Product and Rate Choices: The Case of U.S. Apple Growers.” Amer. J. Agrie. Econ. 80(May 1998): 382-96.CrossRefGoogle Scholar
Just, R.E., Hueth, D.L., and Schmitz, A.. Applied Welfare Economics and Public Policy. Prentice Hall, Inc. Englewood Cliffs, NJ, 1982.Google Scholar
Kelsey, M.P. and Schwallier, P.. Cost of Producing Fresh Apples in Western Michigan. Coop. Ext. Service. Michigan State University, Ext. Bulletin E-110, Oct. 1989.Google Scholar
Lave, L.B. “The Value of Better Weather Information to the Raisin Industry.” Econometrica 31(1963): 151-64.CrossRefGoogle Scholar
Lichtenberg, E., Parker, D.D., and Zilberman, D. “Marginal Analysis of Welfare Costs of Environmental Policies: The Case of Pesticide Regulation.” Amer. J. Agrie. Econ. 70(November 1988): 868-74.Google Scholar
Parker, M.L., Unrath, C.R., Safley, C., and Lock-wood, D.. High Density Apple Orchard Management. North Carolina Cooperative Extension Service, AG-581, June 1998.Google Scholar
Pennsylvania Agricultural Extension Service. Estimated Cost and Returns for Apples. Pennsylvania State University, 1996.Google Scholar
Rice-Mahr, S.E. and Moffit, L.J.. “Biologic and Economic Assessment of Pesticide Usage on Cranberries.” NAPIAP Rep. No. 2-CA294; USDA, Washington DC, 1994.Google Scholar
Roosen, J. “A Regional Econometric Model of U.S. Apple Supply and Demand.” Staff Paper #317, Department of Economics, Iowa State University, 1999.Google Scholar
Roosen, J., Fox, J.A., Hennessy, D.A., and Schreiber, A. “Consumers' Valuation of Insecticide Use Restrictions: An Application to Apples.” J. Agrie. Res. Econ. 23(1998): 367-84.Google Scholar
Rosenberger, D.A. “Biological Assessment of Fungicide Use in Apple Production.” Unpublished Manuscript, Cornell University, 1999.Google Scholar
Sunding, D.L. “Measuring the Marginal Cost of Nonuniform Environmental Regulations.” Amer. J. Agrie. Econ. 78(November 1996): 1098-107.CrossRefGoogle Scholar
U.S. Department of Agriculture. Agricultural Statistics. Washington, DC. Various Years.Google Scholar
U.S. Department of Agriculture. ERS/CED. Fruit and Tree Nuts Situation and Outlook Report: Yearbook. Washington, DC., various years.Google Scholar
U.S. Department of Agriculture. ERS/CED. Non-citrus Fruit and Nuts Annual Summary. Washington, DC, various years.Google Scholar
U.S. Department of Agriculture. NASS. Agricultural Prices: Annual Summaries. Washington, DC, various years.Google Scholar
U.S. Department of Agriculture. NASS/ERS. Agricultural Chemical Usage: Fruits Summary. Washington, DC, various years.Google Scholar
Van Ravenswaay, E.O. and Hoehn, J.P.. “The Impact of Health Risk Information on Food Demand: A Case Study of Alar and Apples.” In Caswell, J.A. (ed.). Economics of Food Safety. New York: Elsevier, 1991, p. 155-74.CrossRefGoogle Scholar
Vossen, P., Klonsky, K., Tourte, L., and Levingston, P.. Sample Costs to Establish an Apple Orchard and Produce Apples. U.C. Coop. Ext. 1994.Google Scholar
Webb, Samuel C.Managerial Economics. Houghton Mifflin Company, Boston: 1976.Google Scholar
Willet, L.S. “The U.S. Apple Industry: Econometric Model and Projection.” Agrie. Res. Econ. Rev. 22(October 1993): 138-49.Google Scholar