Biotechnology and Pest Resistance: An Economic Assessment of Refuges
Date
1997-10-01
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Hellmich, Richard
Emeritus USDA-ARS Research Entomologist
Emeritus Affiliate Professor
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Babcock, Bruce
Emeritus Professor
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Center for Agricultural and Rural Development
Abstract
Biologists now engineer transgenic crop varieties that offer farmers a new tool for effectively managing pests. Concern over pest resistance, however, has prompted the Environmental Protection Agency to require resistance management plans. This paper develops an economic model of pest management with pest resistance to estimate the constant proportion of cropland planted in refuge that maximizes farm income over a fixed planning horizon. Results indicate a clear economic tradeoff between the pest control benefits of a transgenic variety and the resistance management benefits afforded by refuge.