Based on a welfare approach using a partial equilibrium model coming from microeconomics, this paper analyzes whether a local regulation aimed at reducing risks due to pesticides should be imposed at the production level or the consumption level. This paper characterizes the economic impact of these possible regulations from a theoretical point of view. Local and nonlocal producers compete only in the local market regarding selling conventional and organic products. Local producers incur variable costs related to reducing the risk of damage resulting from their new organic production methods. A local policymaker maximizing local welfare chooses either a regulation that is imposed on its local producers via production requirements or on all local and nonlocal producers via retail requirements that directly affect consumption. We show that local regulation is selected for relatively large values of damage. In this case, the organic regulation is influenced by whether the damage is incurred by residents and the environment close to the production site or by consumers. If the damage is incurred by residents and the environment close to the production site, only regulations targeting the local producers are selected, which improves the profits for nonlocal producers. Concerning damage incurred by consumers after their consumption, each type of regulation is selected depending on the cost of the safe technology, but the regulation targeting the consumption level harms nonlocal producers.

中文翻译：

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监管有机产品时的本地和全球福利：本地监管应该针对生产还是消费？

本文基于使用微观经济学的部分均衡模型的福利方法，分析了应在生产层面还是消费层面实施旨在降低农药风险的地方法规。本文从理论的角度描述了这些可能的法规的经济影响。本地和非本地生产商仅在本地市场上就传统和有机产品的销售展开竞争。当地生产者承担与降低新的有机生产方法造成的损害风险相关的可变成本。当地政策制定者要最大限度地提高当地福利，要么选择通过生产要求强加给当地生产者的法规，要么通过直接影响消费的零售要求强加给所有当地和非当地生产者。我们表明，对于相对较大的损坏值，选择了当地法规。在这种情况下，有机监管受到损害是由居民和生产地点附近的环境还是由消费者造成的。如果损害是由居民和生产现场附近的环境造成的，则只选择针对本地生产者的法规，这提高了外地生产者的利润。关于消费者在消费后遭受的损害，根据安全技术的成本选择每种类型的监管，但针对消费水平的监管损害了非本地生产者。有机法规受到损害是由居民和生产地点附近的环境还是由消费者造成的。如果损害是由居民和生产现场附近的环境造成的，则只选择针对本地生产者的法规，这提高了外地生产者的利润。关于消费者在消费后遭受的损害，根据安全技术的成本选择每种类型的监管，但针对消费水平的监管损害了非本地生产者。有机法规受到损害是由居民和生产地点附近的环境还是由消费者造成的。如果损害是由居民和生产现场附近的环境造成的，则只选择针对本地生产者的法规，这提高了外地生产者的利润。关于消费者在消费后遭受的损害，根据安全技术的成本选择每种类型的监管，但针对消费水平的监管损害了非本地生产者。