The impact of an ad valorem pesticide tax on cropping patterns and pesticide use
examined In the South Central Texas Crop Reporting District. Output supply equations
econometrically estimated and used in the simulation. A 25 percent tax on pesticide
to have major impacts on cropping patterns and on pesticide use. Assuming other input
prices were unaffected, the supply of one important crop would fall by more than
for some of the highly soluble and persistent pesticides, which present the greatest
groundwater quality, would also decrease substantially (some as much as 50 percent).