Volume 44, Issue 3, September 2019

September, 2019

By: Hong, Yeon A.; Gallardo, R. Karina; Fan, Xiaoli; Atallah, Shady; Gómez, Miguel I.
We investigate how phytosanitary regulations related to apple maggot could affect optimal pest control strategies and profits for apple producers potentially located in apple maggot quarantine areas. We estimate producer profits by an orchard's quarantine status subject to a phytosanitary regulation requiring an additional cold storage period, reflecting the import requirements of China and British Columbia (Canada). Interestingly, we find that the increased cost burden generated by the additional cold storage from quarantine areas has an unintended consequence of raising the number of chemical applications, suggesting a substitution effect between pesticide application and cold storage.