THE EFFECT OF QUALITY ASSURANCE POLICIES FOR PROCESSING TOMATOES ON THE DEMAND FOR PESTICIDES

In California, acceptance sampling is used to monitor the quality of processing tomatoes delivered by growers to processors. A proposal to change the current quality assurance policy was recently put forth to reduce the growers’' incentive to use pesticides. In this article we examine the effect of alternative quality assurance policies on profit-maximizing grower’s' demand for pesticides. The results indicate that the demand for pesticides is sensitive to changes in the quality assurance policy and that the proposed policy would reduce the optimal level of pesticide use on processing tomatoes. Disregarding the impacts of quality assurance policy may be the reason that the demand for pesticides has been underestimated so often in the past.


Issue Date:
1994-07
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/31225
Published in:
Journal of Agricultural and Resource Economics, Volume 19, Number 1
Page range:
78-88
Total Pages:
11




 Record created 2017-04-01, last modified 2017-08-24

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