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Bt cotton, damage control and optimal levels of pesticide use in Pakistan

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  • Kouser, Shahzad
  • Qaim, Matin

Abstract

We use farm survey data and a damage control framework to analyze impacts of Bt cotton on yields and pesticide use in Pakistan. We also derive optimal levels of pesticide use with and without Bt, taking into account health and environmental externalities. This has not been done previously in the literature. Conventional cotton growers suffer from significant insect crop damage; they underuse pesticides from a profit-maximizing perspective. Yet, the picture is reversed when externalities are also considered. The social optimum of pesticide use is much lower than the private optimum, and both optima are lower with Bt than without this technology. Bt controls pest damage more effectively. Hence, yields on Bt farms are about 20 per cent higher in spite of lower pesticide use. Large pest damage is a typical phenomenon in developing countries. In such situations, Bt can contribute to productivity growth, while reducing pesticide applications and associated negative externalities.

Suggested Citation

  • Kouser, Shahzad & Qaim, Matin, 2014. "Bt cotton, damage control and optimal levels of pesticide use in Pakistan," Environment and Development Economics, Cambridge University Press, vol. 19(6), pages 704-723, December.
  • Handle: RePEc:cup:endeec:v:19:y:2014:i:06:p:704-723_00
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    Cited by:

    1. Xingliang Ma & Melinda Smale & David J. Spielman & Patricia Zambrano & Hina Nazli & Fatima Zaidi, 2017. "A Question of Integrity: Variants of Bt Cotton, Pesticides and Productivity in Pakistan," Journal of Agricultural Economics, Wiley Blackwell, vol. 68(2), pages 366-385, June.
    2. Ahmad, Amal, 2022. "Imperfect information and learning: Evidence from cotton cultivation in Pakistan," Journal of Economic Behavior & Organization, Elsevier, vol. 201(C), pages 176-204.
    3. Ayesh, Abubakr & Swinton, Scott M., 2020. "Does a Lemon Technology for Pest Control Act as a Substitute for Insecticides?," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304535, Agricultural and Applied Economics Association.
    4. Steven Haggblade & Melinda Smale & Alpha Kergna & Veronique Theriault & Amidou Assima, 2017. "Causes and Consequences of Increasing Herbicide Use in Mali," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 29(3), pages 648-674, July.
    5. Shahzad Kouser & David J Spielman & Matin Qaim, 2019. "Transgenic cotton and farmers’ health in Pakistan," PLOS ONE, Public Library of Science, vol. 14(10), pages 1-19, October.
    6. Abedullah & Shahzad Kouser, 2019. "Evaluating the Factors Determining Pesticide Residues in Vegetables: A Case Study of Lemons Market in Pakistan," PIDE-Working Papers 2019:167, Pakistan Institute of Development Economics.
    7. Chellattan Veettil, Prakashan & Krishna, Vijesh V. & Qaim, Matin, 2014. "Bt Cotton and Ecosystem Impacts of Pesticide Reductions," GlobalFood Discussion Papers 180977, Georg-August-Universitaet Goettingen, GlobalFood, Department of Agricultural Economics and Rural Development.

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