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Innovation and Regulation in the Pesticide Industry

Published online by Cambridge University Press:  15 September 2016

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

Copyright © 1998 Northeastern Agricultural and Resource Economics Association 

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