Trading risk for ambiguity: Production versus health under pesticide application

Simple item page
dc.citation.issue4
dc.citation.volume104
dc.contributor.authorVoica DC
dc.contributor.authorSchmitz TG
dc.contributor.editorHurley T
dc.date.accessioned2024-06-05T02:56:20Z
dc.date.available2024-06-05T02:56:20Z
dc.date.issued2022-08
dc.description.abstractPesticide use reduces the variation in crop yields at the expense of potentially negative consequences to farmers and their family members. This article examines the trade-off between decreasing production risk and increasing health ambiguity because of pesticide use. We find that under ambiguity, pesticide application decreases the variation in health outcomes, whereas under risk, it decreases the expected value of health outcomes. Health insurance protects health from the pesticide damage but not from the ambiguity effect of pesticide application, and the optimal choice of pesticide application does not depend on the farmer's health preferences over risk or ambiguity. However, in the absence of health insurance, ambiguity can increase or decrease the optimal choice of pesticide compared to the risk case. This suggests that public policies around pesticide usage should be designed to reflect and account for the multitude of behavioral responses in the presence of ambiguity and risk.
dc.description.confidentialfalse
dc.edition.editionAugust 2022
dc.format.pagination1327-1342
dc.identifier.author-urlhttp://gateway.webofknowledge.com/gateway/Gateway.cgi?GWVersion=2&SrcApp=PARTNER_APP&SrcAuth=LinksAMR&KeyUT=WOS:000708283200001&DestLinkType=FullRecord&DestApp=ALL_WOS&UsrCustomerID=c5bb3b2499afac691c2e3c1a83ef6fef
dc.identifier.citationVoica DC, Schmitz TG. (2022). Trading risk for ambiguity: Production versus health under pesticide application. American Journal of Agricultural Economics. 104. 4. (pp. 1327-1342).
dc.identifier.doi10.1111/ajae.12266
dc.identifier.eissn1467-8276
dc.identifier.elements-typejournal-article
dc.identifier.issn0002-9092
dc.identifier.urihttps://mro.massey.ac.nz/handle/10179/69737
dc.languageEnglish
dc.publisherWiley Periodicals LLC on behalf of Agricultural and Applied Economics Association
dc.publisher.urihttps://onlinelibrary.wiley.com/doi/10.1111/ajae.12266
dc.relation.isPartOfAmerican Journal of Agricultural Economics
dc.rights(c) The author/sen
dc.rights.licenseCC BY-NC-NDen
dc.rights.urihttps://creativecommons.org/licenses/by-nc-nd/4.0/en
dc.subjectambiguity
dc.subjectchlorpyrifos
dc.subjectglyphosate
dc.subjecthealth
dc.subjectpesticide
dc.subjectproducers
dc.subjectroundup
dc.subjectuncertainty
dc.titleTrading risk for ambiguity: Production versus health under pesticide application
dc.typeJournal article
pubs.elements-id449320
pubs.organisational-groupOther
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