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Innovation and Regulation in the Pesticide Industry

Published online by Cambridge University Press:  15 September 2016

Michael Ollinger  and
Jorge Fernandez-Cornejo
Michael Ollinger
Affiliation:
Economic Research Service of the U.S. Department of Agriculture
Jorge Fernandez-Cornejo
Affiliation:
Economic Research Service of the U.S. Department of Agriculture
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Abstract

This paper examines the impact of pesticide regulation on the number of new pesticide registrations and pesticide toxicity. Results suggest that regulation adversely affects new pesticide introductions but encourages the development of pesticides with fewer toxic side effects. The estimated regression model implies that a 10% increase in regulatory costs (about $1.5 million per pesticide) causes a 5% reduction in the number of pesticides with higher toxicity.

Type
Articles
Information
Agricultural and Resource Economics Review , Volume 27 , Issue 1 , April 1998 , pp. 15 - 27
Copyright
Copyright © 1998 Northeastern Agricultural and Resource Economics Association 

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