Dead weight loss associated with economic efficiency use of esticides in Indonesian rice production
This paper analyses the efficient use of pesticides by internalizing the costs ofÂ externality, and estimates the monetary value of welfare loss. The benefit ofÂ pesticide use is estimated using a production function, and the economic valueÂ of the adverse impact on human health and the environment are represented byÂ a health cost and consumersâ€™ willingness to pay for a kg reduction in pesticideÂ use. To estimate the benefit of pesticides, the paper uses farm level crosssectionalÂ and time series data set on rice production. The results indicate lowÂ efficiency of using pesticide. This means that totally banning the use of pesticidesÂ is economically inefficient.
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Economic Journal of Emerging Markets (EJEM)
ISSN 2086-3128 (print), ISSN 2502-180X (online)
Center for Economic Studies, Department of Economics,
Universitas Islam Indonesia, Indonesia.
EJEM by http://journal.uii.ac.id/JEP/ is licensed under a Creative Commons Attribution 4.0 International License.