Innovation and Regulation in the Pesticide Industry
This paper examines the hypothesis that regulation negatively affects pesticide innovation, causes pesticide companies to introduce more harmful pesticides, and discourages firms from developing pesticides for minor crop markets. The results confirm that pesticide regulation adversely affects innovation and discourages firms from developing pesticides for minor crop markets. Contrary to the hypothesis, however, regulation encourages firms to develop less toxic pesticides. Estimates suggest that it requires about $29 million in industry expenditures on health and environmental testing to affect the toxicity of one new pesticide.
|Date of creation:||Dec 1995|
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"Pollution Abatement Costs, Regulation And Plant-Level Productivity,"
94-14, Center for Economic Studies, U.S. Census Bureau.
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UFAE and IAE Working Papers
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- Timothy Bates, 1995. "Small Businesses Do Appear To Benefit From State/Local Government Economic Development Assistance," Working Papers 95-2, Center for Economic Studies, U.S. Census Bureau.
- Teece, David J., 1982. "Towards an economic theory of the multiproduct firm," Journal of Economic Behavior & Organization, Elsevier, vol. 3(1), pages 39-63, March.
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