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Biotechnology and Pest Resistance: An Economic Assessment of Refuges

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Biologists now engineer transgenic crop varieties that offer farmers a new tool for effectively managing pests. Concern over pest resistance, however, has prompted the Environmental Protection Agency to require resistance management plans. This paper develops an economic model of pest management with pest resistance to estimate the constant proportion of cropland planted in refuge that maximizes farm income over a fixed planning horizon. Results indicate a clear economic tradeoff between the pest control benefits of a transgenic variety and the resistance management benefits afforded by refuge.

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File URL: http://www.card.iastate.edu/publications/DBS/PDFFiles/97wp183.pdf
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File URL: http://www.card.iastate.edu/publications/synopsis.aspx?id=210
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Bibliographic Info

Paper provided by Center for Agricultural and Rural Development (CARD) at Iowa State University in its series Center for Agricultural and Rural Development (CARD) Publications with number 97-wp183.

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Date of creation: Oct 1997
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Handle: RePEc:ias:cpaper:97-wp183

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  1. Regev, Uri & Shalit, Haim & Gutierrez, A. P., 1983. "On the optimal allocation of pesticides with increasing resistance: The case of alfalfa weevil," Journal of Environmental Economics and Management, Elsevier, vol. 10(1), pages 86-100, March.
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Cited by:
  1. Mitchell, Paul D. & Hurley, Terrance M. & Hellmich, Richard L., 2000. "Economic Evaluation Of Bt Corn Refuge Insurance," 2000 Annual meeting, July 30-August 2, Tampa, FL 21757, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  2. Hyde, Jeffrey & Martin, Marshall A. & Preckel, Paul V. & Buschman, Lawrent L. & Edwards, C. Richard & Sloderbeck, Phillip E. & Higgins, Randall A., 2003. "The Value of Bt Corn in Southwest Kansas: A Monte Carlo Simulation Approach," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 28(01), April.
  3. Secchi, Silvia & Babcock, Bruce A., 1999. "A Model Of Pesticide Resistance As A Common Property And Exhaustible Resource," 1999 Annual meeting, August 8-11, Nashville, TN 21664, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  4. Hurley, Terrance M. & Mitchell, Paul D. & Rice, Marlin E., 2001. "What Is The Value Of Bt Corn?," 2001 Annual meeting, August 5-8, Chicago, IL 20476, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  5. Simpson, R. David & Laxminarayan, Ramanan, 2000. "Biological Limits on Agricultural Intensification: An Example from Resistance Management," Discussion Papers dp-00-43, Resources For the Future.
  6. Hurley, Terrance M. & Secchi, Silvia & Babcock, Bruce A. & Hellmich, Richard L., 2002. "Managing the Risk of European Corn Borer Resistance to Bt Corn," Staff General Research Papers 10294, Iowa State University, Department of Economics.
  7. Babcock, Bruce A. & Secchi, Silvia, 1999. "Managing Pest Resistance: The Potential Of Crop Rotations And Shredding," 1999 Annual meeting, August 8-11, Nashville, TN 21597, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  8. Ramanan Laxminarayan & R. Simpson, 2002. "Refuge Strategies for Managing Pest Resistance in Transgenic Agriculture," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 22(4), pages 521-536, August.
  9. Hurley, Terrance M. & Secchi, Silvia & Hellmich, Richard L., 1999. "Managing The Risk Of European Corn Borer Resistance To Transgenic Corn: An Assessment Of Controversial Refuge Recommendations," 1999 Annual meeting, August 8-11, Nashville, TN 21606, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  10. Grimsrud, Kristine M. & Huffaker, Ray G., 2001. "Optimal Control Of Pest Resistance To Transgenic Crop Varieties," 2001 Annual meeting, August 5-8, Chicago, IL 20452, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

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