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$ 283 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 Courant Research Centre PEG in its series Courant Research Centre: Poverty, Equity and Growth - Discussion Papers with number 105.
Date of creation: 10 Jan 2012
Date of revision:
Contact details of provider:
Postal: Platz der Goettinger Sieben 3; D-37073 Goettingen, GERMANY
Phone: +49 551 39 14066
Fax: + 49 551 39 14059
Web page: http://www.uni-goettingen.de/en/82144.html
Bt cotton; Pesticide use; Health and environmental benefits; Choice experiment; Pakistan;
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:
- NEP-AGR-2012-01-18 (Agricultural Economics)
- NEP-ALL-2012-01-18 (All new papers)
- NEP-ENV-2012-01-18 (Environmental Economics)
- NEP-HEA-2012-01-18 (Health Economics)
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.:
- Khan, M. Azeem & Iqbal, Muhammad & Ahmad, Iftikhar & Soomro, Manzoor, 2002.
"Economic Evaluation of Pesticide Use Externalities in the Cotton Zones of Punjab, Pakistan,"
2688, University Library of Munich, Germany, revised 2002.
- 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.
- 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.
- Glenn W. Harrison & John A. List, 2004.
Journal of Economic Literature,
American Economic Association, vol. 42(4), pages 1009-1055, December.
- 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.
- 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.
- 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.
- Speelman, Stijn & Farolfi, Stefano & Frija, Aymen & D'Haese, Marijke & D'Haese, Luc, 2010. "The impact of the water rights system on smallholder irrigators' willingness to pay for water in Limpopo province, South Africa," Environment and Development Economics, Cambridge University Press, vol. 15(04), pages 465-483, August.
- Perrings, Charles, 2010. "The economics of biodiversity: the evolving agenda," Environment and Development Economics, Cambridge University Press, vol. 15(06), pages 721-746, December.
- 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).
- 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," Working Papers 2004.101, Fondazione Eni Enrico Mattei.
- 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.
- 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.
- 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,"
Blackwell, vol. 29(1), pages 55-67, July.
- 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.
- 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.
- 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.
- 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.
- 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.
- Peter Nijkamp & Chiara Maria Travisi & Gabriella Vindigni, 2002. "Pesticide Risk Valuation in Empirical Economics," Tinbergen Institute Discussion Papers 02-112/3, Tinbergen Institute.
- Mullen, Jeffrey D. & Norton, George W. & Reaves, Dixie Watts, 1997. "Economic Analysis Of Environmental Benefits Of Integrated Pest Management," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 29(02), December.
- 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.
- 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.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dominik Noe).
If references are entirely missing, you can add them using this form.