Readings

• Pearce, D., and Tinch, R. The true price of pesticides. In: Vorley, W., and Keeney, D. (eds.) Bugs in the System. 1998.

Key Questions

The True Price of Pesticides

• What is the difference between financial costs and social costs of pesticides?
• What are the reasons for market failure which might lead to increased pollution from pesticides?
• What are the alternatives to market failure?
• Why do the authors feel that the polluter pays principle is complex?
• What is the idea behind environmental taxes?
• What is the difference between environmental taxes and regulatory mechanisms in reducing pesticide related pollution?
• Comparing both of the above stated policy instruments, the authors declare “ The same extent of pollution reduction is achieved more cheaply under a tax system” ( p. 54). Does this always hold true?
• What does the term “double dividend” of environmental taxes refer to?
• Why is the task of setting up environmental taxes a complex one?
• Why do the authors feel that different pesticides should be taxed at differing levels?
• What are some of the examples of governmental failure in regulating pesticide related pollution?
• What are the two approaches to environmental evaluation?
• Why is considering only the total active ingredient while measuring adverse effects of pesticides inefficient?
• What is the generally quoted BC ratio for pesticide use in American agriculture?
• Why do the authors emphasize calculating marginal effects of pesticide reduction, rather than using alternative scenarios, in order to get an idea of the costs and benefits of pesticide reduction?
• Can pesticide related human health hazards be considered completely as externalities?
• Through which channel is the human intake of pesticides the maximum?
• Is resistance development of pests to pesticide usage an internal / external cost?
• How sensitive is the American public to pesticide related risks? What are the reasons prompting such a reaction?
• How is the value of statistical life (VOSL) calculated?
• How does the approach of considering ‘willingness to pay’ compare with that of ‘willingness to accept’ in calculating the VOSL?
• What does assessing effect of pesticides on biodiversity involve?
• What factors hinder wider adoption of IPM?