TOPICS

Environmental Economics

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Theory

Dynamic Pesticide Regulation under Resistance and Fiscal Constraints

Pesticide use generates dynamic externalities through resistance, health, and environmental channels, complicating the design of optimal regulation. We develop a dynamic framework in which pesticide use, resistance, and damages are jointly determined under a balanced-budget constraint. Resistance affects policy through two margins: it raises marginal external damages by amplifying effective exposure, but also reduces pesticide use, shrinking the fiscal base for intervention. This interaction creates a state-dependent gap between the Pigouvian benchmark and the constrained-efficient policy, which we term fiscal attenuation. We characterize the optimal tax-subsidy system and show that resistance both strengthens the case for taxation and shifts implementation toward non-chemical control. Simulations quantify the nonlinear interaction between resistance dynamics and fiscal capacity, highlighting the joint role of evolving damages and fiscal constraints in optimal environmental poli

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Theory

Estimating Population Dynamics without Population Data

We develop a biologically correct cost system for production systems facing invasive pests that allows the estimation of population dynamics without a priori knowledge of their true values. We apply that model to a data set for olive producers in Crete and derive from it predictions about the underlying populations dynamics. Those dynamics are compared to information on population dynamics obtained from pest sampling with extremely favorable results.

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