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

Issue Date

2-2021

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.

Source or Periodical Title

Ecological Economics

ISSN

0921-8009

Volume

180

Page

1-11

Document Type

Article

Physical Description

graph, tables

Language

English

Subject

Agroecology, Areawide pest suppression, Bioeconomic feedbacks, Crop choice, Discrete choice models, Endogenous sorting

Identifier

DOI:10.1016/j.ecolecon.2020.106883

Digital Copy

yes

En – AGROVOC descriptors

AGROECOLOGY, AREAWIDE PEST SUPPRESSION; BIOECONOMIC FEEDBACKS; CROP CHOICE; DISCRETE CHOICE MODELS; ENDOGENOUS SORTING

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