Hostname: page-component-78c5997874-xbtfd Total loading time: 0 Render date: 2024-11-20T04:32:00.254Z Has data issue: false hasContentIssue false
  • English
  • Français

Pesticide Use and Risk Aversion in the French Wine Sector

Published online by Cambridge University Press:  22 January 2019

Joël Aka ,
Adeline Alonso Ugaglia  and
Jean-Marie Lescot
Joël Aka
Affiliation:
Irstea and Bordeaux Sciences Agro, 1 cours du Général de Gaulle, 33175 Gradignan Cedex, France; e-mail: [email protected].
Adeline Alonso Ugaglia
Affiliation:
Bordeaux Sciences Agro, UMR 1065 SAVE, 1 cours du Général de Gaulle, 33175 Gradignan Cedex, France; e-mail: [email protected].
Jean-Marie Lescot
Affiliation:
Irstea, UR ETBX, 50 avenue de Verdun, 33612 Cestas, France; e-mail: [email protected].
Get access Rights & Permissions [Opens in a new window]

Abstract

This paper studies the risk attitudes of winegrowers in France. In French viticulture, most of the production is done under an appellation regime that constrains maximum authorized yields. We consider a trans-log cost function under the constraint of this maximum yield and estimate winegrowers' attitudes to risk. Our estimates are based on the European Farm Accountancy Data Network database (2005–2014) and data from the French National Institute of Origin and Quality. We find that winegrowers are risk averse. For the majority of winegrowers, risk aversion is declining with expected profit. In the Champagne region, however, where expected profits are far higher than in the other regions, we observe the reverse relation: winegrowers become more risk averse as expected profits rise. (JEL Classifications: C13, C33, O33, Q16).

Keywords

appellation systempesticidesrisk preferenceswine industry
Type
Articles
Information
Journal of Wine Economics , Volume 13 , Issue 4 , November 2018 , pp. 451 - 460
Copyright
Copyright © American Association of Wine Economists 2019 

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

Footnotes

We are indebted to an anonymous reviewer for comments and suggestions that helped to improve this paper. We also thank the participants at the AAWE conference at Cornell University in Ithaca 2018. This work is supported by a public grant overseen by the French National Research Agency (ANR) as part of the “Investissements d'Avenir” program (reference: ANR-10-EQPX-17) and by Bordeaux Sciences Agro and Irstea. It benefited from the data of the CASD (Centre d'acces sécurisé aux données). We also want to thank Eric Giraud-Héraud and Stephane Lemarié for their remarks and comments.”

References

Agreste, (2012). La Champagne viticole a maintenu son activité. Agreste Champagne-Ardenne no. 6.Google Scholar
Aka, J., Alonso Ugaglia, A., and Lescot, J.-M. (2018). Risk attitudes in viticulture: The case of French winegrowers. American Association of Wine Economics, Working Paper No. 224, January.Google Scholar
Antle, J.-M. (1987). Econometric estimation of producers' risk attitudes. American Journal of Agricultural Economics, 69(3), 509–522.Google Scholar
Atanu, S., Love, H. A., and Schwart, R. (1994). Adoption of emerging technologies under output uncertainty. American Journal of Agricultural Economics, 76(4), 836–846.Google Scholar
Aubertot, J.-N., Barbier, J. M., Carpentier, A., Gril, J.-N., Guichard, L., Lucas, P., Savary, S., and Voltz, M. (eds.). (2005). Pesticides, agriculture et environnement. Réduire l'utilisation des pesticides et en limiter les impacts environnementaux. Expertise scientifique collective, Synthèse du rapport. Paris: Inra-Cemagref.Google Scholar
Carpentier, A. (2010). Utilisation des pesticides et économie de la production agricole: Une synthèse critique de la littérature. Colloque SFER La réduction des pesticides agricoles, enjeux, modalités et conséquences, 10–11 mars 2010, Lyon, France.Google Scholar
Carpentier, A., Barbier, J.-M., Bontems, P., Lacroix, A., Laplana, R., Lemarie, S., and Turpin, N. (2005). Aspects économiques de la régulation des pollutions par les pesticides. In Aubertot, J.-N. et al. (eds.), Pesticides, agriculture et environnement. Réduire l'utilisation des pesticides et en limiter les impacts environnementaux. Expertise scientifique collective, Synthèse du rapport. Paris: Inra Cemagref. Available from http://inra.dam.front.pad.brainsonic.com/ressources/afile/234150-6a298-resource-expertise-pesticides-synthese.html.Google Scholar
Castriota, S., and Delmastro, M. (2014). The economics of collective reputation: Evidence from the wine industry. American Journal of Agricultural Economics, 97(2), 469–489.Google Scholar
Chavas, J. P., and Holt, M. T. (1996). Economic behavior under uncertainty: A joint analysis of risk preferences and technology. Review of Economics and Statistics, 78(2), 329–335.Google Scholar
Economie Rurale. (2000). Les signes officiels de qualité. Efficacité, politique et gouvernance. Economie Rurale, 258.Google Scholar
Ecophyto, . (2018). Rapport final du Président du comité opérationnel « Ecophyto 2018 », Chantier 15 « Agriculture écologique et productive ». Paillotin G., 17 juin 2008, 142 p.Google Scholar
Ecophyto II, . (2015). Plan Ecophyto II. Ministère en charge de l’agriculture, Ministère en charge de l’écologie, 20 octobre 2015, 67 p.Google Scholar
Foudi, S., and Erdlenbruch, K. (2012). The role of irrigation in farmers’ risk management strategies in France. European Review of Agricultural Economics, 39(3), 439–457.Google Scholar
Gong, Y., Baylis, K., Kozak, R., and Bull, G. (2016). Farmers’ risk preferences and pesticide use decisions: Evidence from field experiments in China. Agricultural Economics, 47(4), 411–421.Google Scholar
Hinnewinkel, J.-C. (2002). Les usages locaux, loyaux et constants dans les appellations viticoles du nord de l'Aquitaine. Les bases des aires d'appellations d'origine. In Hinnewinkel, J.-C. (ed.), Les Territoires de la Vigne et du Vin, 133–146. Bordeaux: Féret.Google Scholar
Hoevenagel, R., van Noort, E., and de Kok, R. (1999). Study on a European Union Wide Regulatory Framework for Levies on Pesticides. Zoetermeer: European Commission. Available from http://ec.europa.eu/environment/enveco/taxation/pdf/eimstudy.pdf.Google Scholar
International Organisation of Vine and Wine (OIV). (2007). World Wine Statistics 2007. Available from http://www.oiv.int/en/technical-standards-and-documents/statistical-analysis/statistical-data.Google Scholar
Just, R. E., and Pope, R. D. (1978). Stochastic specification of production functions and economic implications. Journal of Econometrics, 7(1), 67–86.Google Scholar
Koundouri, P., Laukkanen, M., Myyra, S., and Nauges, C. (2009). The effects of EU agricultural policy changes on farmers' risk attitudes. European Review of Agricultural Economics, 36(1), 53–77.Google Scholar
Kumbhakar, S. C. (2002). Specification and estimation of production risk, risk preferences and technical efficiency. American Journal of Agricultural Economics, 84(1), 8–22.Google Scholar
Kumbhakar, S. C. and Tveteras, R. (2003). Risk preferences, production risk and firm heterogeneity. Scandinavian Journal of Economics, 105(2), 275–293.Google Scholar
Liu, E. M., and Huang, J. (2013). Risk preferences and pesticide use by cotton farmers in China. Journal of Development Economics, 103 (Supplement C), 202–215.Google Scholar
Moschini, G. (2001). Production risk and the estimation of ex-ante cost functions. Journal of Econometrics, 100(2), 357–380.Google Scholar
Moschini, G., and Hennessy, D. A. (2001). Uncertainty, risk aversion, and risk management for agricultural producers. In Gardner, B. L. and Rausser, G. C. (eds.), Handbook of Agricultural Economics, Volume 1 (Part A), 87–153. Amsterdam: Elsevier.Google Scholar
O'Donnell, C. J., and Woodland, A. (1995). Estimation of Australian wool and lamb production technologies under uncertainty: An error-components approach. American Journal of Agricultural Economics, 77(3), 552–565.Google Scholar
Pennerstorfer, D., and Weiss, C. R. (2012). Product quality in the agri-food chain: Do cooperatives offer high-quality wine? European Review of Agricultural Economics, 40(1), 143–162.Google Scholar
Pope, R. D., and Chavas, J.-P. (1994). Cost functions under production uncertainty. American Journal of Agricultural Economics, 76(2), 196–204.Google Scholar
Sexton, S. E., Lei, Z., and Zilberman, D. (2007). The economics of pesticides and pest control. International Review of Environmental and Resource Economics, 1(3), 271–326.Google Scholar