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Estimating the Adoption of Bt Eggplant in India: Who Benefits from Public-Private Partnership?

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  • Krishna, Vijesh V.
  • Qaim, Matin

Abstract

The study analyzes ex-ante the adoption of insect resistant Bt eggplant in India. Farmers' willingness to pay (WTP) is estimated using the contingent valuation method. Given the economic importance of insect pests, the average WTP for proprietary Bt hybrids is more than four times the current price of conventional hybrids. Since the private innovating firm has shared its technology with the public sector, it is likely that public open-pollinated Bt varieties will also be released after a small delay. This will reduce farmers' WTP for Bt hybrids by 35%, thus decreasing the scope for corporate pricing policies. Nonetheless, ample profit potential remains. Analysis of factors influencing farmers' adoption decisions demonstrates that public Bt varieties will improve technology access for resource-poor eggplant producers. The results suggest that public-private partnership can be beneficial for all parties involved.

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Bibliographic Info

Paper provided by International Association of Agricultural Economists in its series 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia with number 25311.

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Date of creation: 2006
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Handle: RePEc:ags:iaae06:25311

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Keywords: Public-private partnership; biotechnology; Bt eggplant; adoption; willingness to pay; India; Crop Production/Industries; Research and Development/Tech Change/Emerging Technologies;

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  1. Matin Qaim & Alain de Janvry, 2003. "Genetically Modified Crops, Corporate Pricing Strategies, and Farmers' Adoption: The Case of Bt Cotton in Argentina," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(4), pages 814-828.
  2. Rausser, Gordon & Simon, Leo & Ameden, Holly, 2000. "Public-private alliances in biotechnology: Can they narrow the knowledge gaps between rich and poor?," Food Policy, Elsevier, vol. 25(4), pages 499-513, August.
  3. Wilson, Clevo & Tisdell, Clement A., 2000. "Why farmers continue to use pesticides despite environmental health and sustainability costs," Economics, Ecology and Environment Working Papers 48363, University of Queensland, School of Economics.
  4. Qaim, Matin, 2003. "Bt Cotton in India: Field Trial Results and Economic Projections," World Development, Elsevier, vol. 31(12), pages 2115-2127, December.
  5. Carl E. Pray & Anwar Naseem, 2003. "The Economics of Agricultural Biotechnology," Working Papers 03-07, Agricultural and Development Economics Division of the Food and Agriculture Organization of the United Nations (FAO - ESA).
  6. Donald M. McLeod & Olvar Bergland, 1999. "Willingness-to-Pay Estimates Using the Double-Bounded Dichotomous-Choice Contingent Valuation Format: A Test for Validity and Precision in a Bayesian Framework," Land Economics, University of Wisconsin Press, vol. 75(1), pages 115-125.
  7. 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.
  8. Bradford L. Barham & Jeremy D. Foltz & Sunung Moon & Douglas Jackson-Smith, 2004. "A Comparative Analysis of Recombinant Bovine Somatotropin Adoption across Major U.S. Dairy Regions," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 26(1), pages 32-44.
  9. Marra, Michele C. & Hubbell, Bryan J. & Carlson, Gerald A., 2001. "Information Quality, Technology Depreciation, And Bt Cotton Adoption In The Southeast," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 26(01), July.
  10. Payne, Tim & Fernandez-Cornejo, Jorge & Daberkow, Stan G., 2003. "Factors Affecting The Likelihood Of Corn Rootworm Bt Seed Adoption," 2003 Annual Meeting, July 13-16, 2003, Denver, Colorado 35983, Western Agricultural Economics Association.
  11. 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.
  12. Naylor, Rosamond L. & Falcon, Walter P. & Goodman, Robert M. & Jahn, Molly M. & Sengooba, Theresa & Tefera, Hailu & Nelson, Rebecca J., 2004. "Biotechnology in the developing world: a case for increased investments in orphan crops," Food Policy, Elsevier, vol. 29(1), pages 15-44, February.
  13. John Crooker & Joseph Herriges, 2004. "Parametric and Semi-Nonparametric Estimation of Willingness-to-Pay in the Dichotomous Choice Contingent Valuation Framework," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 27(4), pages 451-480, April.
  14. Alok Bohara & Joe Kerkvliet & Robert Berrens, 2001. "Addressing Negative Willingness to Pay in Dichotomous Choice Contingent Valuation," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 20(3), pages 173-195, November.
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Citations

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Cited by:
  1. Krishna, Vijesh & Qaim, Matin & Zilberman, David, 2014. "Transgenic Crops, Production Risk, and Agrobiodiversity," Discussion Papers 164678, University of Bonn, Center for Development Research (ZEF).
  2. Krishna, Vijesh V. & Pascual, Unai & Zilberman, David, 2009. "Channeling consumption preferences for co-existence of landrace and modern varieties in-situ," 2009 Conference, August 16-22, 2009, Beijing, China 51748, International Association of Agricultural Economists.
  3. Breustedt, Gunnar & Muller-Scheessel, Jorg & Latacz-Lohmann, Uwe, 2008. "Forecasting the Adoption of GM Oilseed Rape: Evidence from a Discrete Choice Experiment," 82nd Annual Conference, March 31 - April 2, 2008, Royal Agricultural College, Cirencester, UK 36771, Agricultural Economics Society.
  4. Horna, Daniela & Smale, Melinda & Al-Hassan, Ramatu & Falck-Zepeda, José & Timpo, Samuel E., 2008. "Insecticide use on vegetables in Ghana: Would GM seed benefit farmers?," IFPRI discussion papers 785, International Food Policy Research Institute (IFPRI).
  5. Sadashivappa, Prakash & Qaim, Matin, 2009. "Effects of Bt Cotton in India During the First Five Years of Adoption," 2009 Conference, August 16-22, 2009, Beijing, China 49947, International Association of Agricultural Economists.
  6. Kenneth, Akankwasa & Gerald, Ortmann & Edilegnaw, Wale & Wilberforce, Tushemereirwe, 2012. "Ex-Ante Adoption of New Cooking Banana (Matooke) Hybrids in Uganda Based on Farmers' Perceptions," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 123302, International Association of Agricultural Economists.
  7. Kouser, Shahzad & Qaim, Matin, 2011. "Impact of Bt cotton on pesticide poisoning in smallholder agriculture: A panel data analysis," Ecological Economics, Elsevier, vol. 70(11), pages 2105-2113, September.
  8. Krishna, Vijesh V. & Qaim, Matin, 2011. "Pesticide Reduction Sustainability of Bt Technology in India," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114696, European Association of Agricultural Economists.
  9. Gupta, Aarti, 2011. "An evolving science-society contract in India: The search for legitimacy in anticipatory risk governance," Food Policy, Elsevier, vol. 36(6), pages 736-741.
  10. Fuchs, Doris & Glaab, Katharina, 2011. "Material power and normative conflict in global and local agrifood governance: The lessons of ‘Golden Rice’ in India," Food Policy, Elsevier, vol. 36(6), pages 729-735.

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