Managing diffuse environmental contamination from agricultural pesticides: An economic perspective on issues and policy options, with particular reference to Europe

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There are widely held concerns over environmental contamination from agricultural pesticide applications, and a current policy objective in many Western European countries is to reduce usage levels. However, it appears that existing arrangements to control usage, and thence contamination, are inadequate to achieve the levels of environmental quality currently demanded; policy innovation and reform are needed. This review examines some of the problems of controlling pesticide contamination, and the potential policy instruments for achieving pesticide use reduction for environmental improvement. Particular attention is given to the role of market mechanisms to achieve environmental policy aims, especially through the introduction of financial incentives for producers to switch to integrated pest management practices involving the use of less pesticides. Instruments such as input taxes seem administratively and politically feasible, but need careful design and implementation if environmental objectives with regard to pesticides are to be achieved. Environmental economics can make an important contribution to practical agri-environmental resource management if linked with more explicit acknowledgement of the characteristics of agro-ecosystems.