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Abstract

The Environmental Protection Agency declared the pesticide azinphos-methyl must not be used in apple production after September 2012. We use this ban to contribute to the debate on environmental regulation versus industrial output. We use a computable general equilibrium model to estimate the change to sales, price, and employment in the Washington apple industry and the statewide economy had this ban existed in 2007. We estimate the ban decreases profit per acre by $101; changes sales by -0.8%, prices by 0.2%, and employment by 0.1% in the apple industry; but has negligible impacts on the Washington economy.

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