GM Technology Adoption, Production Risk and On-farm Varietal Diversity
AbstractThis paper examines the impact of transgenic technology adoption on varietal diversity. Transgenic pest-resistant varieties are hypothesized to reduce farmers’ demand for on-farm diversity through an act of substitution, as both serve as production risk reducing instruments. This adverse agro-biodiversity impact might be partially counteracted by an expanding seed sector, supplying a large number of transgenic varieties. The case of Bt cotton in India is taken for empirical illustration. The production function analyses show that both Bt technology and on-farm varietal diversity enhance yield, while reducing the production risk. With few Bt varieties available in the first years, technology adoption entailed a reduction in on-farm varietal diversity. This effect, however, was partially offset by more Bt varieties becoming available over time.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Agricultural and Applied Economics Association in its series 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin with number 49173.
Date of creation: 2009
Date of revision:
Contact details of provider:
Postal: 555 East Wells Street, Suite 1100, Milwaukee, Wisconsin 53202
Phone: (414) 918-3190
Fax: (414) 276-3349
Web page: http://www.aaea.org
More information through EDIRC
Agro-biodiversity; Bt cotton; production risk; transgenic technology; Agricultural and Food Policy; Crop Production/Industries; Environmental Economics and Policy; Farm Management; Productivity Analysis; Risk and Uncertainty;
This paper has been announced in the following NEP Reports:
- NEP-AGR-2009-05-02 (Agricultural Economics)
- NEP-ALL-2009-05-02 (All new papers)
- NEP-EFF-2009-05-02 (Efficiency & Productivity)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Subal C. Kumbhakar & Ragnar Tveter�s, 2003. "Risk Preferences, Production Risk and Firm Heterogeneity," Scandinavian Journal of Economics, Wiley Blackwell, vol. 105(2), pages 275-293, 06.
- Di Falco, Salvatore & Chavas, Jean-Paul & Smale, Melinda, 2006. "Farmer management of production risk on degraded lands: the role of wheat genetic diversity in Tigray Region, Ethiopia," EPTD discussion papers 153, International Food Policy Research Institute (IFPRI).
- Batie, Sandra S. & Ervin, David E., 2001. "Transgenic crops and the environment: missing markets and public roles," Environment and Development Economics, Cambridge University Press, vol. 6(04), pages 435-457, October.
- Stefan Baumgärtner & Martin F. Quaas, 2007. "Agro-biodiversity as natural insurance and the development of financial insurance markets," Working Paper Series in Economics 61, University of Lüneburg, Institute of Economics.
- Matin Qaim, 2005. "Agricultural Biotechnology Adoption in Developing Countries," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 87(5), pages 1317-1324.
- 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.
- Melinda Smale & Jason Hartell & Paul W. Heisey & Ben Senauer, 1998. "The Contribution of Genetic Resources and Diversity to Wheat Production in the Punjab of Pakistan," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(3), pages 482-493.
- Salvatore Di Falco & Charles Perrings, 2003. "Crop Genetic Diversity, Productivity and Stability of Agroecosystems. A Theoretical and Empirical Investigation," Scottish Journal of Political Economy, Scottish Economic Society, vol. 50(2), pages 207-216, 05.
- Just, Richard E. & Pope, Rulon D., 1978. "Stochastic specification of production functions and economic implications," Journal of Econometrics, Elsevier, vol. 7(1), pages 67-86, February.
- Salvatore Di Falco & Jean-Paul Chavas & Melinda Smale, 2007. "Farmer management of production risk on degraded lands: the role of wheat variety diversity in the Tigray region, Ethiopia," Agricultural Economics, International Association of Agricultural Economists, vol. 36(2), pages 147-156, 03.
- Smale, Melinda, 1997. "The Green Revolution and wheat genetic diversity: Some unfounded assumptions," World Development, Elsevier, vol. 25(8), pages 1257-1269, August.
- Latha Nagarajan & Melinda Smale & Paul Glewwe, 2007. "Determinants of millet diversity at the household-farm and village-community levels in the drylands of India: the role of local seed systems," Agricultural Economics, International Association of Agricultural Economists, vol. 36(2), pages 157-167, 03.
- Koundouri, Phoebe & Nauges, Celine, 2005. "On Production Function Estimation with Selectivity and Risk Considerations," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 30(03), December.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search).
If references are entirely missing, you can add them using this form.