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Innovation and Regulation in the Pesticide Industry

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  • Michael Ollinger
  • Jorge Fernandez-Cornejo

Abstract

This 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.

Suggested Citation

  • Michael Ollinger & Jorge Fernandez-Cornejo, 1995. "Innovation and Regulation in the Pesticide Industry," Working Papers 95-14, Center for Economic Studies, U.S. Census Bureau.
    • Handle: RePEc:cen:wpaper:95-14
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    2. Sophie Payne-Gifford & C. S. Srinivasan & Peter Dorward, 2021. "Blunting EU Regulation 1107/2009: following a regulation into a system of agricultural innovation," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 38(1), pages 221-241, February.
    3. Tiffany Shih & Brian Wright, 2011. "Agricultural Innovation," NBER Chapters, in: Accelerating Energy Innovation: Insights from Multiple Sectors, pages 49-85, National Bureau of Economic Research, Inc.
    4. Sun, Huichun & Hurley, Terrance M. & Dentzman, Katherine & Ervin, David E. & Everman, Wesley & Frisvold, George B. & Gunsolus, Jeffrey & Norsworthy, Jason & Owen, Micheal, 2017. "Economic and Behavioral Drivers of Herbicide Resistance Management in the U.S," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 258417, Agricultural and Applied Economics Association.
    5. Yoo, Do-il, 2012. "Individual and Social Learning in Bio-technology Adoption: The Case of GM Corn in the U.S," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124975, Agricultural and Applied Economics Association.
    6. Nicholas Martin & Christian Matt & Crispin Niebel & Knut Blind, 2019. "How Data Protection Regulation Affects Startup Innovation," Information Systems Frontiers, Springer, vol. 21(6), pages 1307-1324, December.
    7. Ollinger, Michael & Fernandez-Cornejo, Jorge, 1998. "Innovation and Regulation in the Pesticide Industry," Agricultural and Resource Economics Review, Cambridge University Press, vol. 27(1), pages 15-27, April.
    8. Wallace E. Huffman & Richard E. Just, 1999. "The organization of agricultural research in western developed countries," Agricultural Economics, International Association of Agricultural Economists, vol. 21(1), pages 1-18, August.
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    11. Ollinger, Michael & Fernandez-Cornejo, Jorge, 1998. "Sunk costs and regulation in the U.S. pesticide industry," International Journal of Industrial Organization, Elsevier, vol. 16(2), pages 139-168, March.
    12. Michael Ollinger & Arnold Aspelin & Martin Shields, 1998. "US regulation and new pesticide registrations and sales," Agribusiness, John Wiley & Sons, Ltd., vol. 14(3), pages 199-212.
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    14. Batie, Sandra S. & Swinton, Scott M. & Schulz, Mary A., 1999. "Fqpa Implementation To Reduce Pesticide Residue Risks: Part I: Agricultural Producer Concerns," Staff Paper Series 11813, Michigan State University, Department of Agricultural, Food, and Resource Economics.
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    19. T. Kirk White & Jerome P. Reiter & Amil Petrin, 2012. "Plant-level Productivity and Imputation of Missing Data in U.S. Census Manufacturing Data," NBER Working Papers 17816, National Bureau of Economic Research, Inc.
    20. Ball, V. Eldon & Lovell, C.A. Knox & Luu, H. & Nehring, Richard F., 2004. "Incorporating Environmental Impacts in the Measurement of Agricultural Productivity Growth," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 29(3), pages 1-25, December.

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