On the induced impacts of French pesticide policies: some macroeconomic assessments

Abstract

The applications of synthetic pesticides by farmers generate fierce debates in France. This paper offers an original macroeconomic quantification of their economic and environmental impacts. We first reveal the statistically significant influence of the prices of crops and pesticides on these application. This influence is lower for cereals than other crops. We then simulate some economic and environmental impacts of future potential French policies. We find, as expected, that a simple tax policy reduces pesticide use and hurts the economic situation of French farmers and food processors. The French livestock sectors are also negatively impacted. We also find that such a simple policy will increase nitrogen pollution and greenhouse gas emissions due to global land use changes. Finally, policy insights regarding these macroeconomic results are discussed.