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Regulating Agricultural Biotechnology: Economics and Policy pp 535–557Cite as

Bt Resistance Management: The Economics of Refuges

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Part of the book series: Natural Resource Management and Policy ((NRMP,volume 30))

Abstract

Refuge requirements have been the primary regulatory tool used to delay pest resistance to Bt crops. This chapter presents a simple method to estimate the annual cost of refuges to producers, applying it to Bt cotton. It also examines broader welfare impacts, estimating how Bt cotton acreage restrictions affect producer surplus, consumer surplus, seed supplier profits, and commodity program outlays. The implications of grower adoption behavior—partial adoption, aggregate adoption, and refuge choice—for regulatory costs are examined. Empirical examples illustrate how providing multiple refuge options significantly reduces regulatory costs.

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Author information

Authors and Affiliations

  1. University of Arizona, USA

    George B. Frisvold

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  1. George B. Frisvold
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Editor information

Editors and Affiliations

  1. University of Maryland, USA

    Richard E. Just

  2. University of California, Davis

    Julian M. Alston

  3. University of California, Berkeley

    David Zilberman

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Frisvold, G.B. (2006). Bt Resistance Management: The Economics of Refuges. In: Just, R.E., Alston, J.M., Zilberman, D. (eds) Regulating Agricultural Biotechnology: Economics and Policy. Natural Resource Management and Policy, vol 30. Springer, Boston, MA. https://doi.org/10.1007/978-0-387-36953-2_24

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