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Abstract

In this study, we empirically estimate the extent of pesticide spillovers on agricultural productivity on a farm-level. As a basis for our empirical analysis, we develop a dynamic damage control specification model of pesticides, where spillovers are associated with the previous period's consumption. We then analytically derive potential spillovers of pesticides on agricultural productivity through effects on the production area, nitrogen fertilizer, and work-machinery productivities and estimate the extent of these effects empirically. To this end, we use a rich farm panel data set on Swiss wheat producers over the period 2009-2015. To account for both pesticide volume and toxicity, a load index is used. Our preliminary results indicate positive short-term spillover effects of the fate toxicity index while the ecotoxicity has a negative spillovers.

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