Pesticide use, health impairments and economic losses under rational farmers behavior

This paper develops a novel methodology for measuring the economic losses resulting from negative health impacts of pesticides while taking into account their role as damage control agent. To this effect production model is presented that takes both impairment caused by on labor units and pest crop enhancing properties pesticides. The supply responses optimal cost adjustments made rational farmers in absence effects are examined, which facilitates proper measurement private associated with biases previous pest-damage measures ignore presence also examined. empirically applied to unique panel dataset organic conventional Greek greenhouse vegetable producers where use health-hazardous particularly prominent. Moreover, estimation indices observational nature data collected, applying recently developed treatment methods. results show suffer considerable quasi-rent due health.