This paper examines the spatial externalities of conventional and organic pest control methods to determine if, and how, the two types affect each other. These interactions make the problem more complicated than the usual analysis of a single externality. The numerical simulation model includes one organically managed and one conventionally managed field. One pest and one predator of the pest move between the two fields over five seasons. In each season, the conventional grower has the option of applying a broad-spectrum pesticide that kills the predator a selective pesticide that has no adverse effects on the predator but is either more expensive or less effective than the broad-spectrum pesticide. The organic grower can apply an organic pesticide,... |