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Refining Opportunity Cost Estimates of Not Adopting GM Cotton: An Application in Seven Sub-Saharan African Countries

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  • Antoine Bou�t
  • Guillaume P. Gru�re

Abstract

A computable general equilibrium model is applied to evaluate the opportunity costs of not adopting Bt cotton, a genetically-modified (GM) insect resistant cotton, in Benin, Burkina-Faso, Mali, Senegal, Togo, Tanzania, and Uganda when it is adopted in other countries. Our model uniquely employs country-specific partial adoption rates and factor-biased productivity shocks in the cotton and oilseed sectors of all adopting regions. Assuming a 50% adoption rate, the opportunity cost of not adopting Bt cotton in the seven surveyed countries amounts to $41 million per year, which is a significant but lower cost than that suggested by the results of previous studies. Trade liberalization only marginally increases this estimate. Copyright 2011, Oxford University Press.

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Bibliographic Info

Article provided by Agricultural and Applied Economics Association in its journal Applied Economic Perspectives and Policy.

Volume (Year): 33 (2011)
Issue (Month): 2 ()
Pages: 260-279

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Handle: RePEc:oup:apecpp:v:33:y:2011:i:2:p:260-279

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  1. Huang, Jikun & Hu, Ruifa & van Meijl, Hans & van Tongeren, Frank, 2004. "Biotechnology boosts to crop productivity in China: trade and welfare implications," Journal of Development Economics, Elsevier, vol. 75(1), pages 27-54, October.
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  4. Antoine Bou�t & Simon Mevel & David Orden, 2007. "More or Less Ambition in the Doha Round: Winners and Losers from Trade Liberalisation with a Development Perspective," The World Economy, Wiley Blackwell, vol. 30(8), pages 1253-1280, 08.
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