Valuing financial, health and environmental benefits of Bt cotton in Pakistan
AbstractData from a farm survey and choice experiment are used to value the benefits of Bt cotton in Pakistan. Unlike previous research on the economic impacts of Bt, which mostly concentrated on financial benefits in terms of gross margins, we also quantify and monetize positive externalities associated with technology adoption. Due to lower chemical pesticide use on Bt cotton plots, there are significant health advantages in terms of reduced incidence of acute pesticide poisoning, and environmental advantages in terms of higher biodiversity and lower soil and groundwater contamination. These positive externalities are valued at US$ 79 per acre, of which half is attributable to health and the other half to environmental improvements. Adding average gross margin gains of US$ 204 results in an aggregate benefit of US$ 284 per acre of Bt, or US$ 1.7 billion for the total Bt cotton area in Pakistan.
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 International Association of Agricultural Economists in its series 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil with number 126544.
Date of creation: 2012
Date of revision:
Bt cotton; Pesticide use; Health and environmental benefits; Choice experiment; Pakistan; Environmental Economics and Policy; Health Economics and Policy; Production Economics; Research and Development/Tech Change/Emerging Technologies; D62; I15; Q51; Q57;
Find related papers by JEL classification:
- D62 - Microeconomics - - Welfare Economics - - - Externalities
- I15 - Health, Education, and Welfare - - Health - - - Health and Economic Development
- Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
- Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics
This paper has been announced in the following NEP Reports:
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.:
- Vivien Foster & Susana Mourato, 2000. "Valuing the Multiple Impacts of Pesticide Use in the UK: A Contingent Ranking Approach," Journal of Agricultural Economics, Wiley Blackwell, vol. 51(1), pages 1-21.
- Krishna, Vijesh V. & Qaim, Matin, 2012. "Bt cotton and sustainability of pesticide reductions in India," Agricultural Systems, Elsevier, vol. 107(C), pages 47-55.
- 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.
- Ashok Gulati & Kavery Ganguly, 2010. "The changing landscape of Indian agriculture," Agricultural Economics, International Association of Agricultural Economists, vol. 41(s1), pages 37-45, November.
- M. Azeem Khan & Muhammad Iqbal & Iftikhar Ahmad & Manzoor H. Soomro, 2002.
"Economic Evaluation of Pesticide Use Externalities in the Cotton Zones of Punjab, Pakistan,"
The Pakistan Development Review,
Pakistan Institute of Development Economics, vol. 41(4), pages 683-698.
- Khan, M. Azeem & Iqbal, Muhammad & Ahmad, Iftikhar & Soomro, Manzoor, 2002. "Economic Evaluation of Pesticide Use Externalities in the Cotton Zones of Punjab, Pakistan," MPRA Paper 2688, University Library of Munich, Germany, revised 2002.
- Chiara M. Travisi & Peter Nijkamp & Raymond J. G. M. Florax, 2004.
"A Meta-Analysis of the Willingness to Pay for Reductions in Pesticide Risk Exposure,"
2004.101, Fondazione Eni Enrico Mattei.
- Raymond J. G. M. Florax & Chiara M. Travisi & Peter Nijkamp, 2005. "A meta-analysis of the willingness to pay for reductions in pesticide risk exposure," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 32(4), pages 441-467, December.
- Florax, Raymond J.G.M. & Travisi, Chiara M. & Nijkamp, Peter, 2005. "A Meta-Analysis of the Willingness to Pay for Reductions in Pesticide Risk Exposure," 2005 Annual meeting, July 24-27, Providence, RI 19524, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
- Matin Qaim, 2009. "The Economics of Genetically Modified Crops," Annual Review of Resource Economics, Annual Reviews, vol. 1(1), pages 665-694, 09.
- Zhifeng Gao & Lisa O. House & Xiaohua Yu, 2010. "Using choice experiments to estimate consumer valuation: the role of experimental design and attribute information loads," Agricultural Economics, International Association of Agricultural Economists, vol. 41(6), pages 555-565, November.
- Cuyno, Leah C. M. & Norton, George W. & Rola, Agnes, 2001. "Economic analysis of environmental benefits of integrated pest management: a Philippine case study," Agricultural Economics, Blackwell, vol. 25(2-3), pages 227-233, September.
- Jikun Huang & Ruifa Hu & Carl Pray & Fangbin Qiao & Scott Rozelle, 2003.
"Biotechnology as an alternative to chemical pesticides: a case study of Bt cotton in China,"
CEMA Working Papers
509, China Economics and Management Academy, Central University of Finance and Economics.
- Huang, Jikun & Hu, Ruifa & Pray, Carl & Qiao, Fangbin & Rozelle, Scott, 2003. "Biotechnology as an alternative to chemical pesticides: a case study of Bt cotton in China," Agricultural Economics, Blackwell, vol. 29(1), pages 55-67, July.
- Krishna, Vijesh V. & Qaim, Matin, 2007.
"Potential Impacts of Bt Eggplant on Economic Surplus and Farmers Health in India,"
2007 Annual Meeting, July 29-August 1, 2007, Portland, Oregon TN
9909, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
- Vijesh V. Krishna & Matin Qaim, 2008. "Potential impacts of Bt eggplant on economic surplus and farmers' health in India," Agricultural Economics, International Association of Agricultural Economists, vol. 38(2), pages 167-180, 03.
- Nick Hanley & Robert Wright & Vic Adamowicz, 1998. "Using Choice Experiments to Value the Environment," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 11(3), pages 413-428, April.
- John List & Paramita Sinha & Michael Taylor, 2006.
"Using choice experiments to value non-market goods and services: Evidence from field experiments,"
Natural Field Experiments
00278, The Field Experiments Website.
- List John A. & Sinha Paramita & Taylor Michael H., 2006. "Using Choice Experiments to Value Non-Market Goods and Services: Evidence from Field Experiments," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 5(2), pages 1-39, January.
- Maria Travisi, Chiara & Nijkamp, Peter & Vindigni, Gabriella, 2006. "Pesticide risk valuation in empirical economics: a comparative approach," Ecological Economics, Elsevier, vol. 56(4), pages 455-474, April.
- Travisi, Chiara Maria & Nijkamp, Peter, 2008. "Valuing environmental and health risk in agriculture: A choice experiment approach to pesticides in Italy," Ecological Economics, Elsevier, vol. 67(4), pages 598-607, November.
- Pingali, Prabhu L., 2001. "Environmental consequences of agricultural commercialization in Asia," Environment and Development Economics, Cambridge University Press, vol. 6(04), pages 483-502, October.
- Solomon Asfaw & Dagmar Mithöfer & Hermann Waibel, 2010. "Agrifood supply chain, private-sector standards, and farmers' health: evidence from Kenya," Agricultural Economics, International Association of Agricultural Economists, vol. 41(3-4), pages 251-263, 05.
- Enoch M. Kikulwe & Ekin Birol & Justus Wesseler & José Falck‐Zepeda, 2011. "A latent class approach to investigating demand for genetically modified banana in Uganda," Agricultural Economics, International Association of Agricultural Economists, vol. 42(5), pages 547-560, 09.
- 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.
- 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.
- Brethour, Cher & Weersink, Alfons, 2001. "An economic evaluation of the environmental benefits from pesticide reduction," Agricultural Economics, Blackwell, vol. 25(2-3), pages 219-226, September.
- Akhter Ali & Awudu Abdulai, 2010. "The Adoption of Genetically Modified Cotton and Poverty Reduction in Pakistan," Journal of Agricultural Economics, Wiley Blackwell, vol. 61(1), pages 175-192.
- D. McFadden & J. Hausman, 1981.
"Specification Tests for the Multinominal Logit Model,"
292, Massachusetts Institute of Technology (MIT), Department of Economics.
- Hausman, Jerry & McFadden, Daniel, 1984. "Specification Tests for the Multinomial Logit Model," Econometrica, Econometric Society, vol. 52(5), pages 1219-40, September.
- Nazli, Hina & Sarker, Rakhal & Meilke, Karl D. & Orden, David, 2010. "Economic Performance of Bt Cotton Varieties in Pakistan," 2010 Annual Meeting, July 25-27, 2010, Denver, Colorado 61181, Agricultural and Applied Economics Association.
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.