The value of site-specific information and the environment: Technology adoption and pesticide use under uncertainty

Murat Isik, Darren Hudson, Keith H. Coble

Research output: Contribution to journalArticlepeer-review

8 Scopus citations

Abstract

Remote sensing technology offers an opportunity to significantly increase the amount of site-specific information about field characteristics such as pest populations. Coupled with variable rate application technologies, this added information has the potential to provide environmental benefits through reduced pesticide applications. However, producers face a complicated adoption decision because output prices and crop yields are uncertain. A model is developed to examine the potential value of remote sensing information to pesticide applications in an option-value framework under uncertainty. Simulations suggest that remote sensing information could decrease pesticide use, but uncertainty and irreversibility are likely to limit technological adoption by farmers. Potential cost-share subsidies are discussed.

Original languageEnglish
Pages (from-to)245-254
Number of pages10
JournalJournal of Environmental Management
Volume76
Issue number3
DOIs
StatePublished - Aug 2005

Keywords

  • Environmental policy
  • Green payments
  • Option value
  • Pesticide regulation
  • Remote sensing
  • Uncertainty

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