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An econometric analysis of regional adoption patterns of Bt maize in Germany

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  • Nicola Consmüller
  • Volker Beckmann
  • Martin Petrick

Abstract

In this study, our goal is to identify and explain the underlying factors that drive regional adoption of Bt maize MON810 in Germany. Since regional differences cannot be explained by the occurrence of the target pest alone, we assume that under the given regulatory framework for genetically modified (GM) crop production in Germany, farm structures as well as the sociopolitical environment have also influenced regional adoption rates during the past years. Following a description of the relevant legal and economic framework in Germany, we develop theoretical hypotheses for regional variation in Bt maize adoption and test them econometrically with unique data at the federal state (Laender) and county (Landkreis) level. According to our analysis at the federal state level, the maize acreage per farm is the main driver of Bt maize adoption. In addition, there are signs that public opposition to GM cultivation as measured by membership in the German Friends of the Earth association significantly dampens GM cultivation. At the level of Brandenburg counties, the regional infestation frequency of the European Corn Borer, the target pest of Bt‐Maize, is the major determinant of adoption. Although Bt maize is a scale‐neutral technology for controlling damages caused by the Corn Borer, additional fixed costs due to regulation make the technology scale dependent.

Suggested Citation

  • Nicola Consmüller & Volker Beckmann & Martin Petrick, 2010. "An econometric analysis of regional adoption patterns of Bt maize in Germany," Agricultural Economics, International Association of Agricultural Economists, vol. 41(3‐4), pages 275-284, May.
    • Handle: RePEc:bla:agecon:v:41:y:2010:i:3-4:p:275-284
    DOI: 10.1111/j.1574-0862.2010.00439.x
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    1. Volker Beckmann & Claudio Soregaroli & Justus Wesseler, 2006. "Coexistence Rules and Regulations in the European Union," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 88(5), pages 1193-1199.
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    1. Consmuller, Nicola & Beckmann, Volker & Petrick, Martin, 2012. "Identifying driving factors for the establishment of cooperative GMO-free zones in Germany," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126531, International Association of Agricultural Economists.
    2. Consmuller, Nicola & Beckmann, Volker & Petrick, Martin, 2011. "Towards GMO-free landscapes? Identifying driving factors for the establishment of cooperative GMO-free zones in Germany," 51st Annual Conference, Halle, Germany, September 28-30, 2011 114493, German Association of Agricultural Economists (GEWISOLA).
    3. Mattia C. Mancini & Kent Kovacs & Eric Wailes & Jennie Popp, 2016. "Addressing the Externalities from Genetically Modified Pollen Drift on a Heterogeneous Landscape," Land, MDPI, vol. 5(4), pages 1-18, October.
    4. Niedermayr, Andreas & Kapfer, Martin & Kantelhardt, Jochen, 2016. "Using Econometric Models To Analyse The Spatial Distribution Of Oil Pumpkin Cultivation In Austria," 56th Annual Conference, Bonn, Germany, September 28-30, 2016 244886, German Association of Agricultural Economists (GEWISOLA).
    5. Groeneveld, Rolf A. & Wesseler, Justus & Berentsen, Paul B.M., 2013. "Dominos in the dairy: An analysis of transgenic maize in Dutch dairy farming," Ecological Economics, Elsevier, vol. 86(C), pages 107-116.
    6. Areal, Francisco J. & Riesgo, Laura & Gómez-Barbero, Manuel & Rodríguez-Cerezo, Emilio, 2012. "Consequences of a coexistence policy on the adoption of GMHT crops in the European Union," Food Policy, Elsevier, vol. 37(4), pages 401-411.

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