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Simulating the Market and Environmental Impacts of French Pesticide Policies: A Macroeconomic Assessment

Abstract : The application of synthetic pesticides by farmers generates fierce debates in France. This paper offers an original macroeconomic quantification of the economic and environmental impacts of pesticide applications. We first reveal the statistically significant influence of the prices of crops and pesticides on these applications. This influence is smaller for cereals than for other crops. We then simulate some economic and environmental impacts of potential French policies that may be introduced. As expected, implementation of a tax policy reduces pesticide use and weakens the economic situation of French farmers and food processors. More originally, we find that French livestock activities are seriously affected by increased feed costs. We also find that a pesticide tax increases nitrogen pollution and greenhouse gas emissions due to global land use changes. Finally, policy insights regarding these macroeconomic results are discussed.
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https://hal.inrae.fr/hal-03281422
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Submitted on : Thursday, July 8, 2021 - 11:03:13 AM
Last modification on : Wednesday, August 25, 2021 - 3:56:02 PM

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François Bareille, Alexandre Gohin. Simulating the Market and Environmental Impacts of French Pesticide Policies: A Macroeconomic Assessment. Annals of Economics and Statistics, CNGP-INSEE, 2020, pp.1-28. ⟨10.15609/annaeconstat2009.139.0001⟩. ⟨hal-03281422⟩

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