Estimating the adoption of Bt eggplant in India: Who Benefits from public-private partnership?
The study analyzes ex-ante the adoption of insect resistant Bt eggplant in India. Farmers' willingness to pay (WTP) is estimated using the contingent valuation method. Given the economic importance of insect pests, the average WTP for proprietary Bt hybrids is more than four times the current price of conventional hybrids. Since the private innovating firm has shared its technology with the public sector, it is likely that public open-pollinated Bt varieties will also be released after a small delay. This will reduce farmers' WTP for Bt hybrids by 35%, thus decreasing the scope for corporate pricing policies. Nonetheless, ample profit potential remains. Analysis of factors influencing farmers' adoption decisions demonstrates that public Bt varieties will improve technology access for resource-poor eggplant producers. The results suggest that public-private partnership can be beneficial for all parties involved.
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