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Estimating the adoption of Bt eggplant in India: Who Benefits from public-private partnership?

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  • Krishna, Vijesh V.
  • Qaim, Matin

Abstract

The study analyzes ex-ante the adoption of insect resistant Bt eggplant in India. Farmers' willingness to pay (WTP) is estimated using the contingent valuation method. Given the economic importance of insect pests, the average WTP for proprietary Bt hybrids is more than four times the current price of conventional hybrids. Since the private innovating firm has shared its technology with the public sector, it is likely that public open-pollinated Bt varieties will also be released after a small delay. This will reduce farmers' WTP for Bt hybrids by 35%, thus decreasing the scope for corporate pricing policies. Nonetheless, ample profit potential remains. Analysis of factors influencing farmers' adoption decisions demonstrates that public Bt varieties will improve technology access for resource-poor eggplant producers. The results suggest that public-private partnership can be beneficial for all parties involved.

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Bibliographic Info

Article provided by Elsevier in its journal Food Policy.

Volume (Year): 32 (2007)
Issue (Month): 5-6 ()
Pages: 523-543

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Handle: RePEc:eee:jfpoli:v:32:y:2007:i:5-6:p:523-543

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  1. Wilson, Clevo & Tisdell, Clem, 2001. "Why farmers continue to use pesticides despite environmental, health and sustainability costs," Ecological Economics, Elsevier, vol. 39(3), pages 449-462, December.
  2. Rausser, Gordon & Simon, Leo & Ameden, Holly, 2000. "Public-private alliances in biotechnology: Can they narrow the knowledge gaps between rich and poor?," Food Policy, Elsevier, vol. 25(4), pages 499-513, August.
  3. Marra, Michele C. & Hubbell, Bryan J. & Carlson, Gerald A., 2001. "Information Quality, Technology Depreciation, And Bt Cotton Adoption In The Southeast," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 26(01), July.
  4. Matin Qaim & Arjunan Subramanian & Gopal Naik & David Zilberman, 2006. "Adoption of Bt Cotton and Impact Variability: Insights from India," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 28(1), pages 48-58.
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  6. Qaim, Matin, 2003. "Bt Cotton in India: Field Trial Results and Economic Projections," World Development, Elsevier, vol. 31(12), pages 2115-2127, December.
  7. Payne, Tim & Fernandez-Cornejo, Jorge & Daberkow, Stan G., 2003. "Factors Affecting The Likelihood Of Corn Rootworm Bt Seed Adoption," 2003 Annual Meeting, July 13-16, 2003, Denver, Colorado 35983, Western Agricultural Economics Association.
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  9. Matin Qaim & Alain de Janvry, 2003. "Genetically Modified Crops, Corporate Pricing Strategies, and Farmers' Adoption: The Case of Bt Cotton in Argentina," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(4), pages 814-828.
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  11. Bradford L. Barham & Jeremy D. Foltz & Sunung Moon & Douglas Jackson-Smith, 2004. "A Comparative Analysis of Recombinant Bovine Somatotropin Adoption across Major U.S. Dairy Regions," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 26(1), pages 32-44.
  12. Naylor, Rosamond L. & Falcon, Walter P. & Goodman, Robert M. & Jahn, Molly M. & Sengooba, Theresa & Tefera, Hailu & Nelson, Rebecca J., 2004. "Biotechnology in the developing world: a case for increased investments in orphan crops," Food Policy, Elsevier, vol. 29(1), pages 15-44, February.
  13. Feder, Gershon & Just, Richard E & Zilberman, David, 1985. "Adoption of Agricultural Innovations in Developing Countries: A Survey," Economic Development and Cultural Change, University of Chicago Press, vol. 33(2), pages 255-98, January.
  14. Donald M. McLeod & Olvar Bergland, 1999. "Willingness-to-Pay Estimates Using the Double-Bounded Dichotomous-Choice Contingent Valuation Format: A Test for Validity and Precision in a Bayesian Framework," Land Economics, University of Wisconsin Press, vol. 75(1), pages 115-125.
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Citations

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Cited by:
  1. Gupta, Aarti, 2011. "An evolving science-society contract in India: The search for legitimacy in anticipatory risk governance," Food Policy, Elsevier, vol. 36(6), pages 736-741.
  2. 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.
  3. Krishna, Vijesh V. & Pascual, Unai & Zilberman, David, 2009. "Channeling consumption preferences for co-existence of landrace and modern varieties in-situ," 2009 Conference, August 16-22, 2009, Beijing, China 51748, International Association of Agricultural Economists.
  4. Kenneth, Akankwasa & Gerald, Ortmann & Edilegnaw, Wale & Wilberforce, Tushemereirwe, 2012. "Ex-Ante Adoption of New Cooking Banana (Matooke) Hybrids in Uganda Based on Farmers' Perceptions," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 123302, International Association of Agricultural Economists.
  5. Sadashivappa, Prakash & Qaim, Matin, 2009. "Effects of Bt Cotton in India During the First Five Years of Adoption," 2009 Conference, August 16-22, 2009, Beijing, China 49947, International Association of Agricultural Economists.
  6. Kouser, Shahzad & Qaim, Matin, 2011. "Impact of Bt cotton on pesticide poisoning in smallholder agriculture: A panel data analysis," Ecological Economics, Elsevier, vol. 70(11), pages 2105-2113, September.
  7. Horna, J. Daniela & Smale, Melinda & Al-Hassan, Ramatu M. & Falck-Zepeda, Jose Benjamin & Timpo, Samuel E., 2008. "Insecticide Use on Vegetables in Ghana: Would GM Seed Benefit Farmers?," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6506, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  8. Fuchs, Doris & Glaab, Katharina, 2011. "Material power and normative conflict in global and local agrifood governance: The lessons of ‘Golden Rice’ in India," Food Policy, Elsevier, vol. 36(6), pages 729-735.
  9. Krishna, Vijesh & Qaim, Matin & Zilberman, David, 2014. "Transgenic Crops, Production Risk, and Agrobiodiversity," Discussion Papers 164678, University of Bonn, Center for Development Research (ZEF).
  10. Krishna, Vijesh V. & Qaim, Matin, 2011. "Pesticide Reduction Sustainability of Bt Technology in India," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114696, European Association of Agricultural Economists.

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