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Do Refuge Requirements for Biotechnology Crops Promote Economic Efficiency? Some Evidence for Bt Cotton

Listed author(s):
  • Livingston, Michael J.
  • Storer, Nicholas P.
  • Van Duyn, John W.
  • Kennedy, George G.

We examine producer behavior, resistance evolution, and returns under alternative refuge requirements in an eastern North Carolina region with multiple corn, cotton, and soybean fields infested by a mobile pest. Returns are highest, pyrethroid sprays occur least frequently, and pyrethroid resistance evolution is delayed most effectively with no refuge requirement. Complying with the current 20% refuge requirement costs the producer $8.67 per cotton acre, or $34.21 per non-transgenic insecticidal (Bt) cotton acre. Returns are highest under each refuge requirement when one-toxin Bt cotton is not phased out; however, removal of the technology at the earliest phase-out date minimizes regional pyrethroid sprays.

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Article provided by Southern Agricultural Economics Association in its journal Journal of Agricultural and Applied Economics.

Volume (Year): 39 (2007)
Issue (Month): 01 (April)

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Handle: RePEc:ags:joaaec:6619
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