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Innovation and Regulation in the Pesticide Industry

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  • Ollinger, Michael
  • Fernandez-Cornejo, Jorge

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.

Suggested Citation

  • Ollinger, Michael & Fernandez-Cornejo, Jorge, 1998. "Innovation and Regulation in the Pesticide Industry," Agricultural and Resource Economics Review, Cambridge University Press, vol. 27(1), pages 15-27, April.
    • Handle: RePEc:cup:agrerw:v:27:y:1998:i:01:p:15-27_00
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    1. Managi, Shunsuke, 2006. "Are there increasing returns to pollution abatement? Empirical analytics of the Environmental Kuznets Curve in pesticides," Ecological Economics, Elsevier, vol. 58(3), pages 617-636, June.
    2. Sophie Payne-Gifford & C. S. Srinivasan & Peter Dorward, 2021. "Blunting EU Regulation 1107/2009: following a regulation into a system of agricultural innovation," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 38(1), pages 221-241, February.
    3. Ollinger, Michael & Fernandez-Cornejo, Jorge, 1998. "Innovation and Regulation in the Pesticide Industry," Agricultural and Resource Economics Review, Cambridge University Press, vol. 27(1), pages 15-27, April.
    4. Kuchler, Fred & Ralston, Katherine & Unnevehr, Laurian J., 1997. "Reducing pesticide risks to US food consumers: can agricultural research help?," Food Policy, Elsevier, vol. 22(2), pages 119-132, April.
    5. Aka, Joël, 2017. "Market approval of phytosanitary active substances in Europe: An empirical duration analysis," Food Policy, Elsevier, vol. 68(C), pages 143-153.
    6. Huffman, Wallace E. & Just, Richard E., 1999. "The organization of agricultural research in western developed countries," Agricultural Economics, Blackwell, vol. 21(1), pages 1-18, August.
    7. Batie, Sandra S. & Ervin, David E., 2000. "Transgenic Crops And The Environment: Missing Markets And Public Role," Staff Paper Series 11556, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    8. Ollinger, Michael & Moore, Danna L. & Chandran, Ram, 2004. "Meat And Poultry Plants' Food Safety Investments: Survey Findings," Technical Bulletins 33559, United States Department of Agriculture, Economic Research Service.
    9. Fuglie, Keith & Ballenger, Nicole & Rubenstein, Kelly Day & Klotz, Cassandra & Ollinger, Michael & Reilly, John & Vasavada, Utpal & Yee, Jet, 1996. "Agricultural Research and Development: Public and Private Investments Under Alternative Markets and Institutions," Agricultural Economic Reports 262031, United States Department of Agriculture, Economic Research Service.
    10. T. Kirk White & Jerome P. Reiter & Amil Petrin, 2012. "Plant-level Productivity and Imputation of Missing Data in U.S. Census Manufacturing Data," NBER Working Papers 17816, National Bureau of Economic Research, Inc.
    11. Ball, V. Eldon & Lovell, C.A. Knox & Luu, H. & Nehring, Richard F., 2004. "Incorporating Environmental Impacts in the Measurement of Agricultural Productivity Growth," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 29(3), pages 1-25, December.
    12. Tiffany Shih & Brian Wright, 2011. "Agricultural Innovation," NBER Chapters, in: Accelerating Energy Innovation: Insights from Multiple Sectors, pages 49-85, National Bureau of Economic Research, Inc.
    13. Sun, Huichun & Hurley, Terrance M. & Dentzman, Katherine & Ervin, David E. & Everman, Wesley & Frisvold, George B. & Gunsolus, Jeffrey & Norsworthy, Jason & Owen, Micheal, 2017. "Economic and Behavioral Drivers of Herbicide Resistance Management in the U.S," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 258417, Agricultural and Applied Economics Association.
    14. Yoo, Do-il, 2012. "Individual and Social Learning in Bio-technology Adoption: The Case of GM Corn in the U.S," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124975, Agricultural and Applied Economics Association.
    15. Nicholas Martin & Christian Matt & Crispin Niebel & Knut Blind, 2019. "How Data Protection Regulation Affects Startup Innovation," Information Systems Frontiers, Springer, vol. 21(6), pages 1307-1324, December.
    16. Ollinger, Michael & Mueller, Valerie, 2003. "Managing For Safer Food: The Economics Of Sanitation And Process Controls In Meat And Poultry Plants," Agricultural Economic Reports 33975, United States Department of Agriculture, Economic Research Service.
    17. Ollinger, Michael & Fernandez-Cornejo, Jorge, 1998. "Sunk costs and regulation in the U.S. pesticide industry," International Journal of Industrial Organization, Elsevier, vol. 16(2), pages 139-168, March.
    18. Michael Ollinger & Arnold Aspelin & Martin Shields, 1998. "US regulation and new pesticide registrations and sales," Agribusiness, John Wiley & Sons, Ltd., vol. 14(3), pages 199-212.
    19. Batie, Sandra S. & Swinton, Scott M. & Schulz, Mary A., 1999. "Fqpa Implementation To Reduce Pesticide Residue Risks: Part I: Agricultural Producer Concerns," Staff Paper Series 11813, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    20. Courbois, Claude B., 1998. "Determinants Of Pesticide Registration For Food Crops," 1998 Annual meeting, August 2-5, Salt Lake City, UT 20920, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

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