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Bt Corn and Insect Resistance: An Economic Assessment of Refuges

Author

Listed:
  • Hurley, Terrance M.
  • Babcock, Bruce A.
  • Hellmich, Richard L.

Abstract

Genetically engineered crops offer farmers a new option for controlling pests. The high efficacy of these pesticidal crops, combined with the potential for widespread adoption, has raised concerns that pest resistance may prematurely diminish their value. In response to these concerns, the Environmental Protection Agency requires resistance management plans. Current resistance management plans rely on a high-dose refuge strategy. This analysis extends the current framework for evaluating high-dose refuge strategies to include a measure of agricultural productivity and conventional pesticide use. The economic tradeoff relative to agricultural productivity, conventional pesticide use, and pest resistance is assessed when Bt corn is planted to control the European corn borer.
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Suggested Citation

  • Hurley, Terrance M. & Babcock, Bruce A. & Hellmich, Richard L., 2001. "Bt Corn and Insect Resistance: An Economic Assessment of Refuges," Staff General Research Papers Archive 5152, Iowa State University, Department of Economics.
    • Handle: RePEc:isu:genres:5152
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    Cited by:

    1. Alston, Julian M. & Hyde, Jeffrey & Marra, Michele C. & Mitchell, Paul D., 2003. "An Ex Ante Analysis of the Benefits from the Adoption of Corn Rootworm Resistant, Transgenic Corn Technology," 2003 Conference (47th), February 12-14, 2003, Fremantle, Australia 57828, Australian Agricultural and Resource Economics Society.
    2. Mitchell, Paul D. & Zhu, En (John), 2003. "Moral Hazard And Bt Corn Refuge," 2003 Annual meeting, July 27-30, Montreal, Canada 22113, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    3. Frisvold, George B. & Reeves, Jeanne M., 2008. "The costs and benefits of refuge requirements: The case of Bt cotton," Ecological Economics, Elsevier, vol. 65(1), pages 87-97, March.
    4. Jonas Kathage & Manuel Gómez-Barbero & Emilio Rodríguez-Cerezo, 2016. "Framework for assessing the socio-economic impacts of Bt maize cultivation," JRC Research Reports JRC103197, Joint Research Centre.
    5. Troy Day & David A Kennedy & Andrew F Read & David McAdams, 2021. "The economics of managing evolution," PLOS Biology, Public Library of Science, vol. 19(11), pages 1-14, November.
    6. Brorsen, B. Wade, 2009. "Research: Are We Valuing the Right Stuff?," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 34(01), pages 1-10, April.
    7. Grimsrud, Kristine M. & Huffaker, Ray, 2006. "Solving multidimensional bioeconomic problems with singular-perturbation reduction methods: Application to managing pest resistance to pesticidal crops," Journal of Environmental Economics and Management, Elsevier, vol. 51(3), pages 336-353, May.
    8. repec:ags:aaea22:335859 is not listed on IDEAS
    9. Silvia Secchi & Terrance M. Hurley & Bruce A. Babcock & Richard L. Hellmich, 2006. "Managing European Corn Borer Resistance to Bt Corn with Dynamic Refuges," Natural Resource Management and Policy, in: Richard E. Just & Julian M. Alston & David Zilberman (ed.), Regulating Agricultural Biotechnology: Economics and Policy, chapter 0, pages 559-577, Springer.
    10. 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.
    11. Desquilbet, Marion & Hermann, Markus, 2012. "An assessment of bioeconomic modeling of pest resistance with new insights into dynamic refuge fields," TSE Working Papers 12-263, Toulouse School of Economics (TSE).
    12. Paul D. Mitchell & Terrance M. Hurley, 2006. "Adverse Selection, Moral Hazard, and Grower Compliance with Bt Corn Refuge," Natural Resource Management and Policy, in: Richard E. Just & Julian M. Alston & David Zilberman (ed.), Regulating Agricultural Biotechnology: Economics and Policy, chapter 0, pages 599-623, Springer.
    13. Ambec, Stefan & Desquilbet, Marion, 2006. "Pest Resistance Regulation and Pest Mobility," 2006 Annual meeting, July 23-26, Long Beach, CA 21134, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    14. Marion Desquilbet & Markus Herrmann, 2016. "The Dynamics of Pest Resistance Management: The Case of Refuge Fields for Bt Crops," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 64(2), pages 253-288, June.
    15. Huang, Jikun & Chen, Ruijian & Qiao, Fangbin & Wu, Kongming, 2015. "Biosafety management and pesticide use in China's Bt cotton production," China Economic Review, Elsevier, vol. 33(C), pages 67-75.
    16. Yang, Juan & Mitchell, Paul D., 2004. "Unbalanced Nested Component Error Model For Estimating Pest Damage Functions," 2004 Annual meeting, August 1-4, Denver, CO 20002, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    17. Belcher, Ken & Nolan, James & Phillips, Peter W.B., 2005. "Genetically modified crops and agricultural landscapes: spatial patterns of contamination," Ecological Economics, Elsevier, vol. 53(3), pages 387-401, May.
    18. Mann, John T. & Adam, Brian D. & Arthur, Frank, 2013. "Stored-grain insect control costs in varying climates and levels of insects’ phosphine resistance," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150631, Agricultural and Applied Economics Association.
    19. Brown, Zachary S. & Cho, Chanheung & Roh, Hyeongyul & Gross, Kevin & Tregeagle, Daniel, 2023. "A Global Sensitivity Analysis of the Price of Pesticide Resistance," 2023 Annual Meeting, July 23-25, Washington D.C. 335859, Agricultural and Applied Economics Association.
    20. Stefan Ambec & Marion Desquilbet, 2012. "Regulation of a Spatial Externality: Refuges versus Tax for Managing Pest Resistance," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 51(1), pages 79-104, January.
    21. Langrock, Ines & Hurley, Terrance M. & Ostlie, Kenneth, 2003. "Farmer Demand For Corn Rootworm Bt Corn: Do Insect Resistance Management Guidelines Matter?," 2003 Annual meeting, July 27-30, Montreal, Canada 22033, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

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