Battling Resistance to Antibiotics and Pesticides: An Economic Approach

399 Pages·2002·4.32 MB·English

by  Ramanan Laxminarayan

Battling Resistance
to Antibiotics
and Pesticides
An Economic Approach
Edited by
Ramanan Laxminarayan
Resources for the Future
Washington, DC
©2003 Resources for the Future
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Library of Congress Cataloging-in-Publication Data
Battling resistance to antibiotics and pesticides: an economic approach / Ramanan
Laxminarayan, editor.
p. ; cm.
Includes index.
ISBN 1-891853-51-1 (hardcover : alk. paper)
1. Drug resistance in microorganisms. 2. Pesticide resistance. 3. Pesticide
resistance—Economic aspects.
[DNLM: 1. Drug Resistance. 2. Antibiotics—economics. 3. Antibiotics—
standards. 4. Pesticides—economics. 5. Pesticides—standards. WB 330 B336 2002]
I.Laxminarayan, Ramanan.
QR177 .B384 2002
616'.01—dc21 2002010243
f e d c b a
The paper in this book meets the guidelines for permanence and durability of the Com-
mittee on Production Guidelines for Book Longevity of the Council on Library
Resources.
The text of this book was designed by Betsy Kulamer and typeset in Stone Serif and
Stone Sans by Carol Levie. The cover was designed by Marek Antioniak.
The findings, interpretations, and conclusions offered in this publication are
those of the contributors and are not necessarily those of Resources for the Future,
its directors, or its officers.
ISBN 1–891853–51–1
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Resources for the Future
Directors
Catherine G. Abbott
Joan Z. Bernstein
Julia Carabias Lillo
Norman L. Christensen Jr.
James H. S. Cooper
W. Bowman Cutter
John M. Deutch
Dod A. Fraser
Kathryn S. Fuller
Mary A. Gade
F. Henry Habicht II
David G. Hawkins
Lawrence H. Linden
Lawrence U. Luchini
Jim Maddy
Frank L. Matthews
William D. Nordhaus
James F. O’Grady Jr.
Steven W. Percy
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Robert M. Solow
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Paul R. Portney, President
Edward F. Hand, Vice President–Finance and Administration
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Lesli A. Creedon, Corporate Secretary and Director of Development
Contents
Contributors........................................................................................................ix
About This Book.................................................................................................xi
Introduction: On the Economics of Resistance .................................................1
Ramanan Laxminarayan
PART I. ISSUES OF OPTIMAL MANAGEMENT OF RESISTANCE
1 Dynamics of Antibiotic Use:Ecological versus Interventionist
Strategies To Manage Resistance to Antibiotics ......................................17
James E. Wilen and Siwa Msangi
2 Using Antibiotics When Resistance Is Renewable ....................................42
Robert Rowthorn and Gardner M. Brown
3 Value of Treatment Heterogeneity for Infectious Diseases .....................63
Ramanan Laxminarayan and Martin L. Weitzman
Commentary:To Take or Not To Take the Antibiotic? .........................................76
James N. Sanchirico
Commentary:Same Infection, Same Time, Same Antibiotic? ..............................84
Stephen W. Salant
4 Pest Mobility, Market Share, and the Efficacy of Refuge Requirements for
Resistance Management ...........................................................................94
Silvia Secchi and Bruce A. Babcock
Commentary:Need for Direct Collaboration between Economists
and Biologists ............................................................................................113
Fred Gould
• v •
vi • Contents
PART II. THE IMPACT OF RESISTANCE
5 The Impact of Resistance on Antibiotic Demand in Patients
with Ear Infections ..................................................................................119
David H. Howard and Kimberly J. Rask
Commentary:Measuring the Cost of Resistance ...............................................134
Ramanan Laxminarayan
6 What Can We Learn from the Economics of Pesticides?
Impact Assessment of Genetically Modified Plants ...............................137
Hermann Waibel, Jan C. Zadoks, and Gerd Fleischer
Commentary:The Role of Ecosystem Complexity in Genetically
Modified Organisms..................................................................................158
Karl Seeley
7 Elements of Economic Resistance Management Strategies—
Empirical Evidence from Case Studies in Germany ................................161
Gerd Fleischer and Hermann Waibel
Commentary:Can We Justify Resistance Management Strategies
for Conventional Pesticides?.......................................................................180
Fred Gould
8 Pesticide Resistance, the Precautionary Principle, and the
Regulation of BtCorn: Real Option and Rational Option
Approaches to Decisionmaking ..............................................................184
Benoît Morel, R. Scott Farrow, Felicia Wu, and Elizabeth A. Casman
9 Resistance Economics of Transgenic Crops under Uncertainty:
A Real Option Approach .........................................................................214
Justus Wesseler
Commentary:Economics of Transgenic Crops and Pest Resistance:
An Epidemiological Perspective .................................................................238
Christopher A. Gilligan
PART III. THE BEHAVIOR OF FIRMS
10 An Economic Model of a Genetic Resistance Commons:
Effects of Market Structure Applied to Biotechnology
in Agriculture...........................................................................................263
Douglas Noonan
Commentary:Doesthe MonopolistCare about Resistance?..............................288
Carolyn Fischer
Contents • vii
11 The Interaction of Dynamic Problems and Dynamic Policies:
Some Economics of Biotechnology ........................................................293
Timo Goeschl and Timothy Swanson
12 Industrial Organization and Institutional Considerations in
Agricultural Pest Resistance Management .............................................330
Jennifer Alix and David Zilberman
Commentary:Strategic Issues in Agricultural Pest Resistance Management.......357
R. David Simpson
Index................................................................................................................363
About the Editor..............................................................................................377

Contributors
Jennifer Alix,graduate student, Department of Agricultural and Resource Eco-
nomics, University of California, Berkeley
Bruce A. Babcock, director, Center for Agricultural and Rural Development,
and professor, Department of Economics, Iowa State University
Gardner M. Brown,professor, Department of Economics, University of Wash-
ington
Elizabeth A. Casman,research engineer, Department of Engineering and Pub-
lic Policy Carnegie Mellon University
R. Scott Farrow,principal research economist, Department of Engineering and
Public Policy, and director, Center for the Study and Improvement of Regula-
tion, Carnegie Mellon University
Carolyn Fischer,fellow, Resources for the Future
Gerd Fleischer, Integrated Pest Management policy expert, Rural Develop-
ment Department, The World Bank
Christopher A. Gilligan,professor, Department of Plant Sciences, University of
Cambridge, United Kingdom
Timo Goeschl,university lecturer, Department of Land Economy, University
of Cambridge, United Kingdom
Fred Gould,professor, Department of Entomology, North Carolina State Uni-
versity
David H. Howard,assistant professor, Rollins School of Public Health, Emory
University
• ix •