The present study aims to empirically analyze the competing effects of social interactions and conversion subsidies on the adoption of organic farming practices for two samples of olive and cereal growers in Greece and Germany, respectively. To this end we construct two alternative indicators to capture informational cascades created in rural areas, one based on demographic characteristics and one on profitability considerations. Building upon the theoretical findings of Foster and Rosenweig (1995), Munshi (2004), Bandiera and Rasul (2006) and Weber (2012), we find that informational cascades are indeed important in revising farmers' perceptions and adoption behavior in both rural areas of Europe. Our results show that conversion subsidies can enhance social network effects internalizing informational externalities even in areas where there is already a critical mass of adopters.

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The threats posed by neonicotinoid insecticides to bee populations have been the focus of considerable research. Previous work has shed new light on the effects of neonicotinoids on bees by uncovering pathways through which neonicotinoids affect bee population dynamics and the potential interactions they have with exogenous stressors. Yet, little is known about whether these effects translate in a field-relevant setting to substantial losses in honey yields for commercial beekeepers. Here, we used data from a 6-year survey of 60 apiaries in Greece and economic modelling to assess at the field level the effects of neonicotinoid insecticides on honey production. Based on production function estimates, we found that sub-lethal concentrations of two widely used neonicotinoid insecticides (imidacloprid and thiamethoxam) detected in the nectar of flowers resulted in substantial losses in honey production for commercial beekeepers in our sample. By simulating a scenario with ideal pathogenic and environmental conditions, we found that the magnitude of the neonicotinoid effects decreases significantly under ideal conditions providing evidence for possible synergies at the field between neonicotinoids and environmental and pathogenic factors. Moreover, in a replicated study with grouped apiaries, we found evidence that the marginal effects of neonicotinoids on honey production vary across apiaries facing different conditions.

The present paper develops a novel methodology for measuring the economic losses resulting from the negative health impacts of pesticides while taking into account their role as a damage control agent. To this effect a production model is presented that takes into account both the effect of the health impairment caused by pesticides on labor units and the pest control and crop enhancing properties of pesticides. The supply-responses and optimal cost adjustments made by rational farmers in the absence of health effects are examined, which facilitates the proper measurement of the private economic losses associated with the health effects of pesticides. The biases in previous pest-damage measures that ignore the presence of health effects are also examined. The model is empirically applied to a unique panel dataset of Greek greenhouse producers where the use of health-hazardous pesticides is particularly prominent. Moreover the estimation of health impairment indices takes into account the observational nature of the data collected, applying recently developed treatment effects methods. The results show that farmers suffer considerable quasi-rent losses due to the negative effect of pesticides on health with the average being 1,511 Euros.

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