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GM Technology Adoption, Production Risk and On-farm Varietal Diversity

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Author Info
Krishna, Vijesh V.
Zilberman, David
Qaim, Matin

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Abstract

This 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.

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Publisher Info
Paper provided by Agricultural and Applied Economics Association in its series 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin with number 49173.

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Date of creation: 2009
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Handle: RePEc:ags:aaea09:49173

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Related research
Keywords: 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;

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  1. Matin Qaim & Arjunan Subramanian & Gopal Naik & David Zilberman, 2006. "Adoption of Bt Cotton and Impact Variability: Insights from India," Review of Agricultural Economics, American Agricultural Economics Association, vol. 28(1), pages 48-58, 03. [Downloadable!] (restricted)
  2. 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. [Downloadable!] (restricted)
  3. 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. [Downloadable!] (restricted)
  4. Smale, Melinda, 1997. "The Green Revolution and wheat genetic diversity: Some unfounded assumptions," World Development, Elsevier, vol. 25(8), pages 1257-1269, August. [Downloadable!] (restricted)
  5. 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. [Downloadable!] (restricted)
  6. Subal C. Kumbhakar & Ragnar Tveterås, 2003. "Risk Preferences, Production Risk and Firm Heterogeneity," Scandinavian Journal of Economics, Blackwell Publishing, vol. 105(2), pages 275-293, 06. [Downloadable!] (restricted)
  7. 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). [Downloadable!]
  8. 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. [Downloadable!]
  9. Matin Qaim, 2005. "Agricultural Biotechnology Adoption in Developing Countries," American Journal of Agricultural Economics, American Agricultural Economics Association, vol. 87(5), pages 1317-1324, November. [Downloadable!] (restricted)
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