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The problem of reducing pesticide use to avoid the growth of pest resistance is actually a public good problem

Marketing Dec 29, 2020

The problem of reducing pesticide use to avoid the growth of pest resistance is actually a public good problem. What is the nature of the public good in this case? The cultivar choice problem can also be explained in these terms. What is the public good in this case?

Expert Solution

In this case, the nature of the public good depicts that when the usage of pesticides rises to earn a higher payoff by producing a greater yield then there must be an increment in the resistance levels of pests in that product which in turn lowers the future payoff of the farmers.

Furthermore, the nature of the cultivator choice problem, in this case, is that the farmers have no longer incentives to produce any type of crops that yield the highest payoff. Thus, for the farmers, all products are the same; therefore, they will produce the same crop which lowers the genetic diversity of that crop by offering the potential for a new form of the disease to come and destroy all the crops. Hence, it can be inferred that a broad portfolio of crops genetically helps to reduce the risk.

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