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Refining Opportunity Cost Estimates of Not Adopting GM Cotton: An Application in Seven Sub-Saharan African Countries

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  • Antoine Bouët
  • Guillaume P. Gruère

Abstract

A computable general equilibrium model is applied to evaluate the opportunity costs of not adopting Bt cotton, a genetically-modified (GM) insect resistant cotton, in Benin, Burkina-Faso, Mali, Senegal, Togo, Tanzania, and Uganda when it is adopted in other countries. Our model uniquely employs country-specific partial adoption rates and factor-biased productivity shocks in the cotton and oilseed sectors of all adopting regions. Assuming a 50% adoption rate, the opportunity cost of not adopting Bt cotton in the seven surveyed countries amounts to $41 million per year, which is a significant but lower cost than that suggested by the results of previous studies. Trade liberalization only marginally increases this estimate.

Suggested Citation

  • Antoine Bouët & Guillaume P. Gruère, 2011. "Refining Opportunity Cost Estimates of Not Adopting GM Cotton: An Application in Seven Sub-Saharan African Countries," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 33(2), pages 260-279.
    • Handle: RePEc:oup:apecpp:v:33:y:2011:i:2:p:260-279.
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    1. Frisvold, George & Reeves, Jeanne, 2015. "Genetically Modified Crops: International Trade And Trade Policy Effects," International Journal of Food and Agricultural Economics (IJFAEC), Alanya Alaaddin Keykubat University, Department of Economics and Finance, vol. 3(2), pages 1-13, April.
    2. Falck-Zepeda, Jose Benjamin & Gruère, Guillaume P. & Sithole-Niang, Idah (ed.), 2013. "Genetically modified crops in Africa: Economic and policy lessons from countries south of the Sahara," IFPRI books, International Food Policy Research Institute (IFPRI), number 978-0-89629-795-1.

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