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Insecticide Use on Vegetables in Ghana: Would GM Seed Benefit Farmers?

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  • Horna, J. Daniela
  • Smale, Melinda
  • Al-Hassan, Ramatu M.
  • Falck-Zepeda, Jose Benjamin
  • Timpo, Samuel E.

Abstract

Tomato, cabbage and garden egg (African eggplant, or Solanum Aethiopicum) are important crops for small-scale farmers and migrants in the rural and peri-urban areas of Ghana. Genetic modification (GM) has the potential to alleviate poverty through combating yield losses from pests and diseases in these crops, while reducing health risks from application of hazardous chemicals. This ex-ante study uses farm survey data to gauge the potential for adoption of genetically-engineered varieties, estimate the potential impact of adoption on farm profits, and highlight economic differences among the three crops. Farmer's expenditures on insecticides are below the economic optimum in all three crops, and the estimated function for damage abatement shows that insecticide amounts are significant determinants of cabbage yields only. Nonetheless, yield losses from the pests and diseases affect insecticide use. Stochastic budget analysis also indicates a higher rate of return to vegetable production with the use of resistant seeds relative to status quo, even considering the technology transfer fee for GM seeds. Non-insecticide users could accrue higher marginal benefits than current insecticide users. Comparing among vegetable crops with distinct economic characteristics provides a wider perspective on the potential impact of GM technology. Until now, GM eggplant is the only vegetable crop that has been analyzed in the peer-reviewed, applied economics literature. This is the first analysis that includes African eggplant.

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Bibliographic Info

Paper provided by American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) in its series 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida with number 6506.

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Date of creation: 2008
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Handle: RePEc:ags:aaea08:6506

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Keywords: Crop Production/Industries; Research and Development/Tech Change/Emerging Technologies;

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  1. Hareau, Guy G. & Mills, Bradford F. & Norton, George W., 2006. "The potential benefits of herbicide-resistant transgenic rice in Uruguay: Lessons for small developing countries," Food Policy, Elsevier, vol. 31(2), pages 162-179, April.
  2. Bhavani Shankar & Colin Thirtle, 2005. "Pesticide Productivity and Transgenic Cotton Technology: The South African Smallholder Case," Journal of Agricultural Economics, Wiley Blackwell, vol. 56(1), pages 97-116.
  3. Moschini, GianCarlo & Lapan, Harvey E., 1997. "Intellectual Property Rights and the Welfare Effects of Agricultural R & D," Staff General Research Papers 5048, Iowa State University, Department of Economics.
  4. De Groote, Hugo & Overholt, William & Ouma, James Okuro & Mugo, Stephen, 2003. "Assessing The Potential Impact Of Bt Maize In Kenya Using A Gis Based Model," 2003 Annual Meeting, August 16-22, 2003, Durban, South Africa 25854, International Association of Agricultural Economists.
  5. Krishna, Vijesh V. & Qaim, Matin, 2007. "Estimating the adoption of Bt eggplant in India: Who Benefits from public-private partnership?," Food Policy, Elsevier, vol. 32(5-6), pages 523-543.
  6. José Benjamin Falck-Zepeda & Greg Traxler & Robert G. Nelson, 2000. "Surplus Distribution from the Introduction of a Biotechnology Innovation," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(2), pages 360-369.
  7. Babcock, Bruce A. & Lichtenberg, E. & Zilberman, David, 1992. "Impact of Damage Control and Quality of Output: Estimating Pest Control Effectiveness," Staff General Research Papers 10589, Iowa State University, Department of Economics.
  8. Svetlana Edmeades & Melinda Smale, 2006. "A trait-based model of the potential demand for a genetically engineered food crop in a developing economy," Agricultural Economics, International Association of Agricultural Economists, vol. 35(3), pages 351-361, November.
  9. Smale, Melinda & Zambrano, Patricia & Falck-Zepeda, José & Gruère, Guillaume, 2006. "Parables: applied economics literature about the impact of genetically engineered crop varieties in developing economies," EPTD discussion papers 158, International Food Policy Research Institute (IFPRI).
  10. Qaim, Matin & De Janvry, Alain, 2005. "Bt cotton and pesticide use in Argentina: economic and environmental effects," Environment and Development Economics, Cambridge University Press, vol. 10(02), pages 179-200, May.
  11. Guan Zhengfei & Alfons Oude Lansink & Ada Wossink & Ruud Huirne, 2005. "Damage control inputs: a comparison of conventional and organic farming systems," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 32(2), pages 167-189, June.
  12. Elbehri, Aziz & Macdonald, Steve, 2004. "Estimating the Impact of Transgenic Bt Cotton on West and Central Africa: A General Equilibrium Approach," World Development, Elsevier, vol. 32(12), pages 2049-2064, December.
  13. Alfons Oude Lansink & Alain Carpentier, 2001. "Damage Control Productivity: An Input Damage Abatement Approach," Journal of Agricultural Economics, Wiley Blackwell, vol. 52(3), pages 11-22.
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Cited by:
  1. Horna, Daniela & Zambrano, Patricia & Falck-Zepeda, Jose Benjamin & Sengooba, Theresa & Kyotalimye, Miriam, 2013. "Genetically modified cotton in Uganda: An ex ante evaluation," IFPRI book chapters, in: Falck-Zepeda, Jose Benjamin & Gruère, Guillaume P. & Sithole-Niang, Idah (ed.), Genetically modified crops in Africa: Economic and policy lessons from countries south of the Sahara, chapter 3, pages 61-97 International Food Policy Research Institute (IFPRI).
  2. Falck-Zepeda, Jose Benjamin & Gruère, Guillaume P. & Sithole-Niang, Idah (ed.), 2013. "Genetically modified crops in Africa: Economic and policy lessons from countries south of the Sahara," IFPRI books, International Food Policy Research Institute (IFPRI), number 978-0-89629-795-1.

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