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Estimating the Demand for a New Technology: Bt Cotton and Insecticide Policies

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Author Info
 Hubbell, Bryan J
Marra, Michele C
Carlson, Gerald A

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Abstract

This article examines the potential demand for Bt cotton in the Southeast from information gathered in the first year of commercialization. We combine revealed preference (RP) data on adoption of Bt cotton varieties with stated preference (SP) data on willingness to adopt to estimate demand using a double-bounded maximum likelihood procedure. Using estimated demand equations, we simulate the costs of reducing conventional insecticide applications through subsidization of Bt cotton. Results indicate that reducing cotton insecticide applications by 40% in the Southeast would require a $21/acre subsidy, with total annual program costs between $53 million and $60 million. Copyright 2000 by American Agricultural Economics Association

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Publisher Info
Article provided by American Agricultural Economics Association in its journal American Journal of Agricultural Economics.

Volume (Year): 82 (2000)
Issue (Month): 1 (February)
Pages: 118-32
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Handle: RePEc:bla:ajagec:v:82:y:2000:i:1:p:118-32

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  1. Qaim, Matin & de Janvry, Alain, 2002. "Bt Cotton In Argentina: Analyzing Adoption And Farmers' Willingness To Pay," 2002 Annual meeting, July 28-31, Long Beach, CA 19710, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
  2. Greg Traxler, 2004. "The Economic Impacts of Biotechnology-Based Technological Innovations," Working Papers 04-08, Agricultural and Development Economics Division of the Food and Agriculture Organization of the United Nations (FAO - ESA). [Downloadable!]
  3. John C. Whitehead & Subhrendu K. Pattanayak & George L. Van Houtven & Brett R. Gelso, . "Combining Revealed and Stated Preference Data to Estimate the Nonmarket Value of Ecological Services: An Assessment of the State of the Science," Working Papers 05-19, Department of Economics, Appalachian State University. [Downloadable!]
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  4. Iñaki Aguirre, 2008. "Output and misallocation effects in monopolistic third-degree price discrimination," Economics Bulletin, Economics Bulletin, vol. 4(11), pages 1-11. [Downloadable!]
  5. Breustedt, Gunnar & Muller-Scheessel, Jorg & Meyer-Schatz, Henrika Marie, 2007. "UNTER WELCHEN UMSTANDEN WURDEN DEUTSCHE LANDWIRTE GENTECHNISCH VERANDERTEN RAPS ANBAUEN? EIN DISCRETE CHOICE EXPERIMENT (German)," 47th Annual Conference, Weihenstephan, Germany, September 26-28, 2007 7577, German Association of Agricultural Economists (GEWISOLA). [Downloadable!]
  6. Gillespie, Jeffrey & Lewis, Darius, 2008. "Processor Willingness to Adopt a Crawfish Peeling Machine: An Application of Technology Adoption under Uncertainty," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 40(01), April. [Downloadable!]
  7. Lindner, Bob, 2000. "Prospects For Public Plant Breeding In A Small Country," Proceedings:Transitions in Agbiotech: Economics of Strategy and Policy, June 24-25, 1999, Washington, D.C. 26007, Regional Research Project NE-165 Private Strategies, Public Policies, and Food System Performance. [Downloadable!]
  8. Breustedt, Gunnar & Muller-Scheessel, Jorg & Latacz-Lohmann, Uwe, 2008. "Forecasting the Adoption of GM Oilseed Rape: Evidence from a Discrete Choice Experiment," 82nd Annual Conference, March 31 - April 2, 2008, Royal Agricultural College, Cirencester, UK 36771, Agricultural Economics Society. [Downloadable!]
  9. Hareau, Guy & Mills, Bradford F. & Norton, George W. & Bosch, Darrell, 2002. "The Economic Impact Of Genetically Modified Organisms In Small Developing Countries," 2002 Annual meeting, July 28-31, Long Beach, CA 19891, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
  10. Livingston, Michael J. & Carlson, Gerald A. & Fackler, Paul L., 2000. "Bt Cotton Refuge Policy," 2000 Annual meeting, July 30-August 2, Tampa, FL 21850, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
  11. Dillen, K & Demont, M. & Tollens, E., 2008. "Modelling heterogeneity to estimate the ex ante value of biotechnology innovations," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 43945, European Association of Agricultural Economists. [Downloadable!]
  12. Matuschke, Ira & Qaim, Matin, 2006. "Adoption and Impact of Hybrid Wheat in India," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25678, International Association of Agricultural Economists. [Downloadable!]
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