TY - JOUR
T1 - The Value of Site-Specific Information and the Environment: Technology Adoption and Pesticide Use Under Uncertainty
T2 - Technology adoption and pesticide use under uncertainty
AU - Isik, Murat
AU - Hudson, Michael
AU - Coble, Keith
N1 - Funding Information:
This research was supported by the Remote Sensing Technology Center at Mississippi State University. The authors thank two anonymous reviewers for their helpful comments and suggestions.
PY - 2005/8
Y1 - 2005/8
N2 - 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.
AB - 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.
KW - Environmental policy
KW - Green payments
KW - Option value
KW - Pesticide regulation
KW - Remote sensing
KW - Uncertainty
UR - http://www.scopus.com/inward/record.url?scp=20844441833&partnerID=8YFLogxK
U2 - 10.1016/j.jenvman.2005.01.024
DO - 10.1016/j.jenvman.2005.01.024
M3 - Article
C2 - 15935547
VL - 76
SP - 245
EP - 254
JO - Journal of Environmental Management
JF - Journal of Environmental Management
IS - 3
ER -