Environinental and economic consequences of technology adoption: IPM in viticulture

The impact of integrated pest management (IPM) on pesticide use, toxicity and other environmental characteristics, yields, and farm profits is examined for grape growers. The method is generally applicable for technology adoption and accounts for self‐selectivity, simultaneity, and theoretical consistency. IPM adopters apply significantly less insecticides and fungicides than nonadopters among grape producers in six states, accounting for most of the U.S. production. Both the average toxicity and the Environmental Impact Quotient decrease slightly with adoption of insect IPM, but remain about the same for adopters and nonadopters of IPM for diseases. The effect of IPM adoption on yields and variable profits is positive but only significant for the case of IPM for diseases, i.e., the adoption of IPM for diseases increases yields and profits significantly.