Innovation and Regulation in the Pesticide Industry
AbstractThis paper examines the hypothesis that regulation negatively affects pesticide innovation, causes pesticide companies to introduce more harmful pesticides, and discourages firms from developing pesticides for minor crop markets. The results confirm that pesticide regulation adversely affects innovation and discourages firms from developing pesticides for minor crop markets. Contrary to the hypothesis, however, regulation encourages firms to develop less toxic pesticides. Estimates suggest that it requires about $29 million in industry expenditures on health and environmental testing to affect the toxicity of one new pesticide.
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Bibliographic InfoPaper provided by Center for Economic Studies, U.S. Census Bureau in its series Working Papers with number 95-14.
Date of creation: Dec 1995
Date of revision:
CES; economic; research; micro; data; microdata; chief; economist;
Other versions of this item:
- Ollinger, Michael & Fernandez-Cornejo, Jorge, 1998. "Innovation And Regulation In The Pesticide Industry," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 27(1), April.
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