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An Analysis of the Impact of a Ban of Methyl Bromide on the U.S. Winter Fresh Vegetable Market

Abstract This study evaluates the economic impact of a ban on methyl bromide on the U.S. winter fresh vegetable market for six major crops: tomatoes, green peppers, cucumbers, squash, eggplant, and watermelons. Florida is the primary domestic supplier of these products. Mexico and Texas are the competing suppliers of the five vegetable crops and peppers, respectively. Leontief technologies represent both monocrop and double-crop production systems; linear inverse demand functions represent four demand regions in the U.S. and Canada. By increasing production costs and reducing yields, a ban on methyl bromide decreases Florida's FOB revenues by 54% and increases those of Mexico by 65%. Price increases to U.S. fresh vegetable consumers range from near zero to over 10%, depending upon the commodity and location.