Pesticides have been a major contributor to the growth of agricultural productivity and food supply. Yet, they are a source of concern because of human and environmental health side effects. This paper presents methodologies for assessing the productivity and health effects of pesticides. It also provides an overview of some of the major empirical findings. This paper covers major research that analyzes alternative approaches to address issues of resistance buildup, risk and environmental and human health, predator-prey relationships, as well as dynamic considerations. The paper summarizes existing policies that vary from the prescribed social optimum suggested by economic theory to those motivated by political-economy factors and risk aversion. Analysis is provided to relate pesticide policies to the larger context of agricultural and environmental management. This paper also presents recent modeling of invasive species and agricultural biotechnology.
Biofuels have become a leading alternative to fossil fuel because they can be produced domestically by many countries, require only minimal changes to retail distribution and end-use technologies, are a partial response to global climate change, and because they have the potential to spur rural development. Production of biofuel has increased most rapidly for corn ethanol, in part because of government subsidies; yet, corn ethanol offers at most a modest contribution to society's climate change goals and only a marginally positive net energy balance. Current biofuels pose long-run consequences for the provision of food and environmental amenities. In the short run, however, when gasoline supply and demand are inelastic, they serve as a buffer supply of energy, helping to reduce prices. Employing a conceptual model and with back-of-the-envelope estimates of wealth transfers resulting from biofuel production, we find that ethanol subsidies pay for themselves. Adoption of second-generation technologies may make biofuels more beneficial to society. The large-scale production of new types of crops dedicated to energy is likely to induce structural change in agriculture and change the sources, levels, and variability of farm incomes. The socio-economic impact of biofuel production will largely depend on how well the process of technology adoption by farmers and processors is understood and managed. The confluence of agricultural policy with environmental and energy policies is expected.
For millennia, humans have modified plant genes in order to develop crops best suited for food, fiber, feed, and energy production. The earliest efforts, far predating Gregor Mendel's 19th-century discoveries on trait inheritance, involved the selective breeding of plants with desirable characteristics, but the recombination of DNA in offspring was random. Consequently, plant breeding often took decades and frequently yielded crop varieties with unforeseen and undesirable properties. Today, conventional plant breeding remains inherently random and slow, constrained by the availability of desirable traits in closely related plant species. In contrast, agricultural biotechnology employs the modern tools of genetic engineering to reduce uncertainty and breeding time and to transfer traits from more distantly related plants.Arguments in support of and in opposition to the use of genetically engineered seeds have changed little since the technology emerged in the 1980s. On one side, critics express concerns that the technology imposes negative environmental effects and jeopardizes the health of those who consume the "frankenfoods." On the other side, supporters emphasize potential gains from boosting output and lowering food prices for consumers. They argue that such gains are achieved contemporaneous with the adoption of farming practices that lower agrochemical use and lessen soil
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