CREAT: Census Research Exploration and Analysis Tool

Innovation and Regulation in the Pesticide Industry

December 1995

Working Paper Number:

CES-95-14

Abstract

This paper examines the hypothesis that regulation negatively affects pesticide innovation, causes pesticide companies to introduce more harmful pesticides, and discourages firms from developing pesticides for minor crop markets. The results confirm that pesticide regulation adversely affects innovation and discourages firms from developing pesticides for minor crop markets. Contrary to the hypothesis, however, regulation encourages firms to develop less toxic pesticides. Estimates suggest that it requires about $29 million in industry expenditures on health and environmental testing to affect the toxicity of one new pesticide.

Document Tags and Keywords

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:
econometric, company, corporation, innovation, patent, regulation, regulatory, agriculture, agricultural, pollution, farm

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:
National Science Foundation, Center for Economic Studies, Ordinary Least Squares, Securities and Exchange Commission, Labor Productivity, Review of Economics and Statistics, Journal of Political Economy, American Economic Review, University of Chicago, MIT Press, Schools Under Registration Review, Environmental Protection Agency, Survey of Industrial Research and Development, Department of Agriculture, Washington University, National Research Council, University of Minnesota, Cambridge University Press, Cornell University, Journal of Labor Economics, Federal Register, Journal of International Economics

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