Applying a Tax Model for Reduction of Chemical Pesticides Pollution in Agricultural Areas of Selected Countries

Intensive use of chemical fertilizer in agricultural production has caused environmental pollusion. Taxes are used to reduce environmental pollution. This article aims to provide tax simulation model for reduction of chemical pesticides pollution in agricultural areas. The assumption is to maximize utility for farmers، chemical producers and consumers. Panel data of 26 selected countries including Iran were used for 2001- 2008 period. Various econometric models such as ARDL، GLS and SUR were applied. Also Monte Carlo simulation for reducing pollution uncertainty and simulation of VAR to calculate the maximum reduction of pollution were used. Also pollution function optimization to calculate the optimal percent reduction in pollution of various factors was applied. Based on findings of the study some recommendations are made to reduce pollution.