The effects of climate change on agriculture have been widely studied. However, more comprehensive analyses looking at the interactions between the agricultural sector, society and the environment are needed for sound policy decisions.
Pesticide use and emissions of greenhouse gases are both regulated to reduce their undesired social and environmental impacts — externalities. Nikolinka Shakhramanyan, of the University of Luneburg, Germany, and co-authors studied the effects of alternative regulations of those externalities on the agricultural sector in the USA under different climate scenarios. With no regulation in place, climate change is likely to increase agricultural output, pesticide use and environmental and human health costs. The introduction of emission abatement incentives and pesticide taxes reverses these effects, but considerably increases agricultural production costs. However, importantly, farmers are likely to be better off thanks to the price adjustments induced by the market.
The researchers highlight the importance of government support for farmers and consumers of agricultural products when climate and pesticide regulations are in place.
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Contestabile, M. Pesticide taxes. Nature Clim Change 4, 10 (2014). https://doi.org/10.1038/nclimate2092
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DOI: https://doi.org/10.1038/nclimate2092
