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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
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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

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