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The Impacts of Adopting Genetically Engineered Crops in the USA: The Case of Bt Corn

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  • Fernandez-Cornejo, Jorge
  • Li, Jiayi

Abstract

This paper develops an econometric model to analyze the onfarm impact of adoption of genetically engineered (GE) crops on pesticide use and yields after controlling for other factors. The model, which corrects for self-selection and simultaneity and is consistent with profit maximization, is used to estimate the relationship between Bt corn adoption and insecticide use and yields using data from a nationwide farm survey carried out in 2001. Statistically significant econometric results, controlling for other factors, show a moderate insecticide reduction and a small yield increase associated with adoption of Bt corn relative to using conventional corn varieties in 2001.

Suggested Citation

  • Fernandez-Cornejo, Jorge & Li, Jiayi, 2005. "The Impacts of Adopting Genetically Engineered Crops in the USA: The Case of Bt Corn," 2005 Annual meeting, July 24-27, Providence, RI 19318, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea05:19318
    DOI: 10.22004/ag.econ.19318
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    References listed on IDEAS

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    1. Fernandez-Cornejo, Jorge & Beach, E. Douglas & Huang, Wen-Yuan, 1994. "The Adoption of IPM Techniques By Vegetable Growers in Florida, Michigan and Texas," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 26(1), pages 158-172, July.
    2. Fernandez-Cornejo, Jorge, 1996. "The Microeconomic Impact of IPM Adoption: Theory and Application," Agricultural and Resource Economics Review, Cambridge University Press, vol. 25(2), pages 149-160, October.
    3. Jorge Fernandez-Cornejo & Sharon Jans, 1995. "Quality-Adjusted Price and Quantity Indices for Pesticides," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 77(3), pages 645-659.
    4. Fernandez-Cornejo, Jorge, 1998. "Environmental and economic consequences of technology adoption: IPM in viticulture," Agricultural Economics, Blackwell, vol. 18(2), pages 145-155, March.
    5. Fernandez-Cornejo, Jorge, 1996. "The Microeconomic Impact Of Ipm Adoption: Theory And Application," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 25(2), pages 1-12, October.
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    Cited by:

    1. Mutuc, Maria Erlinda M. & Rejesus, Roderick M. & Pan, Suwen & Yorobe, Jose M., 2012. "Impact Assessment of Bt Corn Adoption in the Philippines," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 44(1), pages 117-135, February.
    2. Fernandez-Cornejo, Jorge & Wechsler, Seth James, 2012. "Fifteen Years Later: Examining the Adoption of Bt Corn Varieties by U.S. Farmers," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124257, Agricultural and Applied Economics Association.
    3. Sanglestsawai, Santi & Rodriguez, Divina Gracia P. & Rejesus, Roderick M. & Yorobe, Jose M., 2017. "Production Risk, Farmer Welfare, and Bt Corn in the Philippines," Agricultural and Resource Economics Review, Cambridge University Press, vol. 46(3), pages 507-528, December.
    4. Fernandez-Cornejo, Jorge & Nehring, Richard F. & Newcomb Sinha, Elizabeth & Grube, Arthur & Vialou, Alexandre, 2009. "Assessing Recent Trends in Pesticide Use in U.S. Agriculture," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 49271, Agricultural and Applied Economics Association.
    5. Connor, Lawson & Rejesus, Roderick M., "undated". "Labor Savings and Time Allocation Shifts from the Adoption of Pesticidal GM Crops in the Philippines," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 259967, Agricultural and Applied Economics Association.
    6. Sanglestsawai, Santi & Rejesus, Roderick M. & Yorobe, Jose M., 2014. "Do lower yielding farmers benefit from Bt corn? Evidence from instrumental variable quantile regressions," Food Policy, Elsevier, vol. 44(C), pages 285-296.
    7. E. Phimister & D. Roberts, 2006. "The Effect of Off-farm Work on the Intensity of Agricultural Production," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 34(4), pages 493-515, August.
    8. Fernandez-Cornejo, Jorge & Wechsler, Seth James, 2012. "Revisiting the Impact of Bt Corn Adoption by U.S. Farmers," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 41(3), pages 1-14, December.
    9. McDonald, Tia Michelle & Keating, Ariel Ruth & Fausti, Scott W. & Li, Jing & Lundgren, Jonathan G. & Catangui, Mike, 2010. "Insecticide Use and Crop Selection: A South Dakota Case Study," Economics Staff Papers 91991, South Dakota State University, Department of Economics.
    10. Detre, Joshua D. & Mishra, Ashok K. & Adhikari, Arun, 2010. "Factors Affecting the Adoption of Genetically Modified Crops by Young and Beginning U.S. Farmers and Ranchers," Journal of the ASFMRA, American Society of Farm Managers and Rural Appraisers, vol. 2010, pages 1-15.
    11. Fernandez-Cornejo, Jorge & Livingston, Michael J. & Mitchell, Lorraine & Wechsler, Seth, 2014. "Genetically Engineered Crops in the United States," Economic Research Report 164263, United States Department of Agriculture, Economic Research Service.

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