Environmental Regulation and Regional Economy: Economic Impacts of the Elimination of Azinphos-methyl on the Apple Industry and Washington State
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The Environmental Protection Agency declared the pesticide azinphos-methyl must not be used in
apple production after September 2012. We use this ban to contribute to the debate on environmental
regulation versus industrial output. We use a computable general equilibrium model to estimate
the change to sales, price, and employment in the Washington apple industry and the
statewide economy had this ban existed in 2007. We estimate the ban decreases profit per acre by
$101; changes sales by -0.8%, prices by 0.2%, and employment by 0.1% in the apple industry; but
has negligible impacts on the Washington economy.