Economic feasibility of methyl bromide alternatives

AGRO 10

James Donald Schaub, jim.schaub@usda.gov, Office of Risk Assessment and Cost-Benefit Analysis, United States Department of Agriculture, Office of the Chief Economist, 112-A Whitten Building, Washington, DC 20250
Technical feasibility is a necessary but not sufficient condition to establish economic feasibility. Technical feasibility emphasizes control of one or more of the following: weeds, fungi, nematodes, and insects. Pesticide registrations are based on technical information but involve substantial economic investment for uncertain outcomes. The economic viability of an alternative also depends on it fitting into the existing production system. Partial budget analysis examines the impacts of alternatives on costs and revenues and is a standard economic framework used to compare alternatives. The net impact of these changes is the theoretically correct measure to compare alternatives. Alternatives may differ in effectiveness in terms of crop yield but still be competitive because economics factors can offset differences in performance. Analyses of U.S. nominations for critical use exemptions for continued use of methyl bromide under Decision IX/6 of the Montreal Protocol illustrate the economic competitiveness of currently available alternatives.