| Abstract: | This paper considers the extent to which farmers should be held liable for groundwater contamination from agricultural pesticides. The problem is first viewed as a standard tort and then as a case of product liability, where the question of shifting liability to the manufacturer of the pesticide is considered. The results suggest that, when the problem is viewed as a case of product liability, farmer exemptions from liability can still lead to efficient levels of pesticide use, provided appropriate application methods keyed to site characteristics can be ensured through regulation or other means. |
