Reduction of pesticide use is one of the major challenges in the agricultural sector. Several methods, including efficiency analysis, have been proposed to address this issue. In general, efficiency analysis in the use of pesticides is conducted at the individual level (e.g., farm). We here propose to extend this analysis from farm level to aggregate (or district) level. In addition to the potential pesticide reduction by eliminating individual inefficiency, we measure the reduction due to the reallocation of productive activity across farms, within increasingly large spatial units. Results show that pesticides could be reduced by more than 50% in a sample of farms in the French Department of Meuse during 2014–2016, after eliminating individual technical inefficiency and reallocating activities across farms at the largest spatial unit, while producing at least the same output. Therefore, the reallocation associated with inefficiency elimination can help achieve the pesticide reduction targets set by several countries.
Soil organic carbon sequestration measures entail costs to farmers with different individual characteristics and located in different areas. A cost‐effective analysis taking into account these heterogeneities is crucial for developing effective public policy aimed at increasing carbon sequestration. We undertake such an analysis focusing on three soil organic carbon sequestration measures: no‐till, extension of temporary grasslands, and hedgerows. Through an optimization model applied to France, our results show that only extension of temporary grasslands can store carbon at low cost, though their potential for carbon sequestration is also low. For an ambitious carbon sequestration target, no‐till and hedgerows are needed. Because of heterogeneities among farmers, we show that economic incentives are more cost effective than command and control measures. Furthermore, we highlight that the carbon sequestration policy tested here is unable to totally neutralize agricultural greenhouse gas emissions and that a combination of agricultural and environmental policies is essential for tackling climate change.
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