Working Papers

Impact of Pesticide Reduction Policies on the Economy and Environment in Quebec: Analysis of the EGC Model 

Abstract:    This article analyzes the economic and environmental impact of pesticide reduction policies in Quebec through three scenarios. One of them involves a 15% tax, aligned with the goals of the sustainable agriculture plan. The study relies on a computable general equilibrium model with a disaggregation of the agricultural sector.Scenario results reveal that taxing pesticide use leads to a decrease in agricultural production, farmers' profits, and consumption due to increased prices of agricultural goods and imports. Integrating fertilizer reduction into pesticide reduction goals enhances the positive impact on the environment, resulting in a more pronounced decrease in pesticides. However, taxing pesticide use by Quebec farmers reduces their productivity in favor of other regions.Restricting imports of goods closely tied to pesticides increases agricultural production in Quebec, as well as consumption, compared to the scenario without restrictions.Finally, the study emphasizes that a significant reduction in pesticide use can improve the welfare of Quebec residents if their emphasis on environmental quality is sufficiently high.

Work in Progress

Organic farming vs conventional farming: adoption, transition and profitability  joint with Komla Avoumatsodo 

Abstract: The Quebec farmers who left the organic agriculture sector in 2023 represent over 46% of new entrants. This article develops a dynamic theoretical model to study the profitability and transition between the organic agriculture sector and the conventional agriculture sector. Data indicate that the adoption of organic agriculture is positively correlated with the relative price between organic and conventional products, and negatively correlated with the relative yields of several crops. The model demonstrates that beyond taxes on pesticide use, a subsidy for transitioning farmers is necessary to facilitate the adoption of organic agriculture. Moreover, we have determined an optimal environmental tax on conventional goods, followed by the optimal area of conventional agriculture required to mitigate any long-term negative externality induced by conventional production through environmental regeneration. Finally, we will also examine the adoption and transition of farmers in an uncertain environment, due to the potential arrival of new pests.

Climate Change and Pesticide Reduction Policy in agriculture