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Landscape-level feedbacks in the demand for transgenic pesticidal corn in the Philippines

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  • Brown, Zachary S.
  • Connor, Lawson
  • Rejesus, Roderick M.
  • Yorobe, Jose M.

Abstract

We introduce a novel econometric approach to estimate economic pest control feedbacks within agroecological systems, using discrete choice endogenous sorting models. We apply this approach to deployment of transgenic Bt maize in the Philippines. We show with basic theory how areawide pest suppression from largescale Bt maize deployment attenuates farmers' demand for this technology. Econometric results support this hypothesis and imply long-run demand for the Bt trait is price-inelastic, contrasting with price-elastic demand estimated from a model without feedback. Investigating whether this feedback truly derives from areawide pest suppression, we analyze farmers' pest infestation expectations and find expected damages are significantly reduced by higher areawide Bt deployment. We discuss implications of these findings and other potential applications of the econometric approach to study coupled biological and economic systems.

Suggested Citation

  • Brown, Zachary S. & Connor, Lawson & Rejesus, Roderick M. & Yorobe, Jose M., 2021. "Landscape-level feedbacks in the demand for transgenic pesticidal corn in the Philippines," Ecological Economics, Elsevier, vol. 180(C).
    • Handle: RePEc:eee:ecolec:v:180:y:2021:i:c:s0921800919321950
    DOI: 10.1016/j.ecolecon.2020.106883
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    More about this item

    Keywords

    Agroecology; Bioeconomic feedbacks; Areawide pest suppression; Crop choice; Discrete choice models; Endogenous sorting;
    All these keywords.

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
    • C36 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Instrumental Variables (IV) Estimation
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics

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