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Bt Resistance Management: The Economics of Refuges

In: Regulating Agricultural Biotechnology: Economics and Policy

Author

Listed:
  • George B. Frisvold

    (University of Arizona)

Abstract

Refuge requirements have been the primary regulatory tool used to delay pest resistance to Bt crops. This chapter presents a simple method to estimate the annual cost of refuges to producers, applying it to Bt cotton. It also examines broader welfare impacts, estimating how Bt cotton acreage restrictions affect producer surplus, consumer surplus, seed supplier profits, and commodity program outlays. The implications of grower adoption behavior—partial adoption, aggregate adoption, and refuge choice—for regulatory costs are examined. Empirical examples illustrate how providing multiple refuge options significantly reduces regulatory costs.

Suggested Citation

  • George B. Frisvold, 2006. "Bt Resistance Management: The Economics of Refuges," Natural Resource Management and Policy, in: Richard E. Just & Julian M. Alston & David Zilberman (ed.), Regulating Agricultural Biotechnology: Economics and Policy, chapter 0, pages 535-557, Springer.
    • Handle: RePEc:spr:nrmchp:978-0-387-36953-2_24
    DOI: 10.1007/978-0-387-36953-2_24
    as

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