IMPACT OF THE CANCELLATION POLICY OF USING DANGEROUS CHEMICAL PESTICIDES ON THE ECONOMY AND HOUSEHOLD INCOME INEQUALITY IN THAILAND

Abstract

This research article evaluates the impact of the cancellation policy regarding the use of dangerous chemical pesticides (Paraquat, Glyphosate, and Chlorpyrifos) on the economy and income distribution in Thailand. The Social Accounting Matrix 2018 which includes healthcare spending on pesticide-related illness resulting from dangerous chemical pesticide use is applied in this study, following the study of Resosudarmo and Thorbecke (1998). The findings reveal that pesticides have an effect on the entire economic system in Thailand, with a strong backward linkage to the related agricultural sector and the food industry, while the effect on income distribution appears unclear since there is not much difference in the value-added multiplier between the wages of agricultural households and non-agricultural households. It can be concluded from the results that in terms of a policy, the government should provide support to mitigating the upcoming effect on the economy. For example, supporting appropriate innovation and technology for agriculture to reduce pesticide use, thus raising the value of the agro-food industry through the verification of food safety. The government should also provide budget support for other public policies rather than concentrating merely on decreasing the negative effect of pesticide usage.