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Transgenic technology adoption and on-farm varietal diversity

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  • Krishna, Vijesh V.
  • Zilberman, David
  • Qaim, Matin

Abstract

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 of technology adoption 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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Bibliographic Info

Paper provided by International Association of Agricultural Economists in its series 2009 Conference, August 16-22, 2009, Beijing, China with number 51750.

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Date of creation: 2009
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Handle: RePEc:ags:iaae09:51750

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Web page: http://www.iaae-agecon.org/
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Keywords: Agro-biodiversity; Bt cotton; India; Production risk analysis.; Crop Production/Industries; Environmental Economics and Policy; Land Economics/Use; Production Economics; Productivity Analysis; Risk and Uncertainty;

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  1. 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.
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  3. Thirtle, Colin & Beyers, Lindie & Ismael, Yousouf & Piesse, Jenifer, 2003. "Can GM-Technologies Help the Poor? The Impact of Bt Cotton in Makhathini Flats, KwaZulu-Natal," World Development, Elsevier, vol. 31(4), pages 717-732, April.
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  7. 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.
  8. 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.
  9. 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.
  10. 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.
  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.
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