HOUSEHOLD USE OF SYNTHETIC CHEMICALS AND LABOR FOR DO-IT-YOURSELF YARD CARE

Use of synthetic fertilizers and pesticides on yards is increasingly scrutinized by government officials for health and environmental risks but has not been extensively analyzed by economists. In our model, estimated with data from a national survey, households choose initially how much, if any, money to spend on synthetic chemicals and subsequently how much time to spend on other yard tasks. Expenditures on synthetic chemicals are income inelastic. Time spent on subsequent yard care decreases as income increases but increases as prior chemical expenditures increase. These effects on time allocation and our theoretical model help us to characterize and qualitatively analyze the private benefits of synthetic chemical use and costs of a ban on that use. Data on prices and quantities are necessary to estimate these costs and determine the extent to which politically feasible financial incentives would encourage use of 'environmentally friendlier' alternatives. The non-effect of the number of children on expenditures underscores the importance of future research about expenditures on specific risk-classes of pesticides and household perceptions of risks.