Pesticide-Use Regulations in an Open Economy: A Quantitative Trade Model of France (with Carl Gaigné and Andrea Cheptea)
Abstract :
Reducing pesticide use is a growing concern in modern agriculture, amid increasing awareness of its detrimental consequences for health and the environment. We investigate the impact of pesticide-use restrictions in the French agriculture in a quantitative model of trade. We aim at quantifying the consequences of these restrictions with regards to agricultural production, welfare, and trade flows. Our model endogenizes the choice of crop and farming technique (conventional vs organic) for farmers, and the choice of conventional versus organic food for consumers. We allow for domestic trade flows between French districts, and international trade flows between France and its major trading partners. We simulate the long-run consequences of a tax on pesticides and of a subsidy for organic farming in France and its 96 districts.
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