Work

Pesticide use and the case for toxicity-based taxation: evidence from citrus greening in Florida

Year: 2025

Type: article

Abstract: Farmers make pest and disease management decisions without facing the social costs derived from their input choices. But given the sizable externalities involved, there is a rationale for government intervention. We model the profit-maximizing problem of a representative farmer by specifying a functional form for the damage function that incorporates the biological impact of the pathogen-vector system on yield as well as the abating impact of insecticides on the vector population. We use citrus greening disease in Florida as a case study because farmers there adopted an insecticide program that caused toxicity per acre to increase by 472%. Our simulation results show that a tax rate based on toxicity provides farmers with a strong incentive to substitute highly toxic chemicals with less toxic alternatives. Such a tax is also more efficient relative to a quantity-based tax that achieves a similar reduction in toxicity because it results in a significantly lower reduction in farmers’ yield and profit.

Source: Agricultural and Resource Economics Review

DOI: 10.1017/age.2025.1

Authors: Audrey Rizk, Ariel Singerman

Institution: University of Florida

Language: English

Topic: Phytoplasmas and Hemiptera pathogens

Subfield: Plant Science

Field: Agricultural and Biological Sciences

Domain: Life Sciences

SDGs: Zero hunger, Responsible consumption and production

Open Access status: gold

Estimated APC paid: $2,600