Pest Resistance Regulation and Pest Mobility
We use a spatially-explicit analytical framework to compare mandatory refuges and a tax on the resistant variety as regulation instruments for pest resistance management. Because the extraction of the common-pool pest susceptibility resource depends on the spatial pattern of pest dispersal, we find that the usual preference for market-based environmental instruments does not necessarily apply to pest resistance management. Mandatory refuges are preferred to a tax on the resistant variety for some assumption sets on heterogeneity between farms and pest dispersal distances.
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