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Economic issues in resistance management


  • Secchi, Silvia


This dissertation analyzes economic issues related to the use of agricultural pesticides and antibiotics. The efficacy of both these chemical compounds depends on the existence of susceptible targets. However, through natural selection, their utilization increases the frequency of the genes resistant to the pesticide or drug in the target population, and it decreases the available biological capital of genetic susceptibility, increasing resistance;The aim of this dissertation is to analyze the characteristics of optimal resistance management strategies. An empirical analysis is offered in case of bioengineered Bt corn, which underlines the importance of pest mobility, and the externalities it causes, in the development of resistance;Chapter II consists of a general theoretical model on resistance development that incorporates a spatial dimension. This allows the analysis of the impact of pest mobility on the effectiveness of refuges, areas in which the pesticides are not used to preserve the existence of susceptible pests. A discussion of eradication policies and of the role of cross-resistance is included;Chapter III presents an empirical analysis of the role of pest mobility in the development of resistance in the case of Bt corn. The model includes the existence of mandatory (structured) refuges for farmers planting Bt crops and analyzes the impact of incomplete market penetration on resistance development and profits. If part of the crop production area is seeded with non-bioengineered seed, these fields act as an unstructured refuge. The current policy is effectively based on a 100% market penetration. This is not necessarily a realistic assumption. We explicitly evaluate the role of market penetration on resistance;Chapter IV concentrates on the optimal use of existing antibiotics and on the optimal time path of investment in the development of new technologies. The intertemporal allocation of susceptibility and the development of alternative technologies are important social issues, particularly in the case of antibiotics, because health can be considered a necessary good. The analysis focuses on the role of endogenous technological and the investment of resources in alternative technologies;Lastly, some general conclusions on the importance of externalities and technological change in the mining of susceptibility are presented.

Suggested Citation

  • Secchi, Silvia, 2000. "Economic issues in resistance management," ISU General Staff Papers 2000010108000013359, Iowa State University, Department of Economics.
  • Handle: RePEc:isu:genstf:2000010108000013359

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    References listed on IDEAS

    1. Livingston, Michael J. & Carlson, Gerald A. & Fackler, Paul L., 2000. "Bt Cotton Refuge Policy," 2000 Annual meeting, July 30-August 2, Tampa, FL 21850, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    2. Terrance Hurley & Silvia Secchi & Bruce Babcock & Richard Hellmich, 2002. "Managing the Risk of European Corn Borer Resistance to Bt Corn," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 22(4), pages 537-558, August.
    3. Regev, Uri & Shalit, Haim & Gutierrez, A. P., 1983. "On the optimal allocation of pesticides with increasing resistance: The case of alfalfa weevil," Journal of Environmental Economics and Management, Elsevier, vol. 10(1), pages 86-100, March.
    4. Uri Regev & Andrew P. Gutierrez & Gershon Feder, 1976. "Pests as a Common Property Resource: A Case Study of Alfalfa Weevil Control," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 58(2), pages 186-197.
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    6. Goodin, Robert E., 1982. "Discounting Discounting," Journal of Public Policy, Cambridge University Press, vol. 2(1), pages 53-71, February.
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    9. Laxminarayan, Ramanan, 2001. "Bacterial Resistance and the Optimal Use of Antibiotics," Discussion Papers dp-01-23, Resources For the Future.
    10. Terrance M. Hurley & Bruce A. Babcock & Richard L. Hellmich, 1997. "Biotechnology and Pest Resistance: An Economic Assessment of Refuges," Center for Agricultural and Rural Development (CARD) Publications 97-wp183, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    11. Brown, Gardner & Layton, David F., 1996. "Resistance economics: social cost and the evolution of antibiotic resistance," Environment and Development Economics, Cambridge University Press, vol. 1(3), pages 349-355, July.
    12. Russell J. Gorddard & David J. Pannell & Greg Hertzler, 1995. "An Optimal Control Model For Integrated Weed Management Under Herbicide Resistance," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 39(1), pages 71-87, April.
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    15. Kingston, William, 2000. "Antibiotics, invention and innovation," Research Policy, Elsevier, vol. 29(6), pages 679-710, June.
    16. Tisdell, Clem, 1982. "Exploitation of Techniques That Decline in Effectiveness with Use," Public Finance = Finances publiques, , vol. 37(3), pages 428-437.
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    18. Miranowski, John & Carlson, G., 1986. "Economic Issues in Public and Private Approaches to Preserving Pest Susceptibility," Staff General Research Papers Archive 10726, Iowa State University, Department of Economics.
    19. Stephen Clark, J. & Carlson, Gerald A., 1990. "Testing for common versus private property: The case of pesticide resistance," Journal of Environmental Economics and Management, Elsevier, vol. 19(1), pages 45-60, July.
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