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

Author

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  • Livingston, Michael J.
  • Storer, Nicholas P.
  • Van Duyn, John W.
  • Kennedy, George G.

Abstract

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.

Suggested Citation

  • Livingston, Michael J. & Storer, Nicholas P. & Van Duyn, John W. & Kennedy, George G., 2007. "Do Refuge Requirements for Biotechnology Crops Promote Economic Efficiency? Some Evidence for Bt Cotton," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 39(01), April.
  • Handle: RePEc:ags:joaaec:6619
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    File URL: http://purl.umn.edu/6619
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    Cited by:

    1. Malcolm, Scott A. & Marshall, Elizabeth P. & Aillery, Marcel P. & Heisey, Paul W. & Livingston, Michael J. & Day-Rubenstein, Kelly A., 2012. "Agricultural Adaptation to a Changing Climate: Economic and Environmental Implications Vary by U.S. Region," Economic Research Report 127734, United States Department of Agriculture, Economic Research Service.
    2. Fernandez-Cornejo, Jorge & Livingston, Michael J. & Mitchell, Lorraine & Wechsler, Seth, 2014. "Genetically Engineered Crops in the United States," Economic Research Report 164263, United States Department of Agriculture, Economic Research Service.

    More about this item

    Keywords

    bollworm; Bt cotton; pyrethroids; resistance; structured refuge; unstructured refuge; Crop Production/Industries; Research and Development/Tech Change/Emerging Technologies; Q16; Q56; Q57; Q58; R34; R38;

    JEL classification:

    • Q16 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - R&D; Agricultural Technology; Biofuels; Agricultural Extension Services
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy
    • R34 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Input Demand Analysis
    • R38 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Government Policy

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