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A Trait Specific Model of GM Crop Adoption among U.S. Corn Farmers in the Upper Midwest

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Author Info
Useche, Pilar
Barham, Brad
Foltz, Jeremy
Abstract

This work offers a new approach to the adoption of GM crop varieties by adopting the econometric methodology of the characteristics-based demand literature. A random utility framework was implemented through different specifications of a conditional (CL) and a mixed multinomial logit (MMNL) model of crop-variety choice. Willingness-to-pay and price elasticity estimates for traits were calculated. The MMNL approach demonstrates that individuals' tastes for some traits significantly vary across the population. Results further suggest that labor saving technologies have a much wider potential to be adopted. Overall, the use of a trait-based model to examine the adoption patterns of GM crop varieties among corn farmers in Minnesota and Wisconsin reveals a new set of results and lessons that classic adoption models cannot provide.

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Publisher Info
Paper provided by American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) in its series 2005 Annual meeting, July 24-27, Providence, RI with number 19202.

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Date of creation: 2005
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Handle: RePEc:ags:aaea05:19202

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Related research
Keywords: Research and Development/Tech Change/Emerging Technologies;

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    Other versions:
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    Other versions:
  7. Agarwal, Bina, 1983. "Diffusion of rural innovations: Some analytical issues and the case of wood-burning stoves," World Development, Elsevier, vol. 11(4), pages 359-376, April. [Downloadable!] (restricted)
  8. Aviv Nevo, 2000. "A Practitioner's Guide to Estimation of Random-Coefficients Logit Models of Demand," Journal of Economics & Management Strategy, Blackwell Publishing, vol. 9(4), pages 513-548, December. [Downloadable!] (restricted)
  9. Aviv Nevo, 1998. "Measuring Market Power in the Ready-to-Eat Cereal Industry," NBER Working Papers 6387, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  10. 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.
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