Estimating the Relationship between Pest Management and Energy Prices, and the Implications for Environmental Damage

Abstract

A practicing pest management consultant recently suggested that we need to broaden our research emphasis beyond integrated pest management and consider the total crop system. Instead of our more narrow focus, a more appropriate area of investigation would be the economics of integrated crop and pest management (ICPM) systems. Components of private crop management services may include pest, fertility, water, and soil management, as well as other input decisions. Yet, the key input is improved information to assist in decision making. We need to integrate the crop production and pest management decisions to determine the most efficient (profitable) way to produce output. Unfortunately, a major difficulty in the economic assessment of ICPM is the lack of appropriate biological data. Many of the linkages in crop production systems are not well understood or, if understood, reliable parameter estimates are not available. Thus, one of the emerging issues of the 1980s should be the development of better ICPM systems through both basic and applied research. This paper considers alternative pest management systems for corn production with rising energy prices. First, pest control practices are discussed. Second, historical data are used to estimate derived demand equations for insecticide and herbicide treatment. Third, the impact of rising energy prices on the future demand and supply of pest management systems and on the implied use of insecticides is considered. Pest Control Practices in Corn Production