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The Microeconomic Impact Of Ipm Adoption: Theory And Application

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  • Fernandez-Cornejo, Jorge

Abstract

This paper develops a methodology to calculate the impact of integrated pest management (IPM) on pesticide use, yields, and farm profits. The methodology is applied to the IPM adoption among fresh market tomato producers in eight states. The method is of general applicability. It accounts for self-selectivity and simultaneity, and the pesticide demand and yield equations are theoretically consistent with a profit function. The results support the notion that fresh market tomato growers who adopt IPM for insects and diseases apply significantly less insecticides and fungicides, respectively, than do those who do not adopt IPM; IPM adoption has an insignificant effect on yields and a small effect on profits.

Suggested Citation

  • Fernandez-Cornejo, Jorge, 1996. "The Microeconomic Impact Of Ipm Adoption: Theory And Application," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 25(2), pages 1-12, October.
    • Handle: RePEc:ags:arerjl:31416
    DOI: 10.22004/ag.econ.31416
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