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Potential Impact of Biological Nitrogen Fixation: The Case of Corn

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  • Catherine Halbrendt
  • Melvin Blase

Abstract

With the discovery of gene-splicing technique and advances in biotechnology, biological nitrogen fixation in corn could occur. This study evaluates the impact of BNF on U.S. nitrogen fertilizer demand and corn-planted acreage. An econometric model was constructed. Three substitutive levels of 25, 33 and 50 percent reduction of current application rates were examined. The results showed a decrease of 18, 25 and 36 percent of nitrogen fertilizer demand and about 1 percent in acreage planted as a result of lower production costs.

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  • Catherine Halbrendt & Melvin Blase, 1989. "Potential Impact of Biological Nitrogen Fixation: The Case of Corn," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 11(1), pages 145-156.
  • Handle: RePEc:oup:revage:v:11:y:1989:i:1:p:145-156.
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    File URL: http://hdl.handle.net/10.1093/aepp/11.1.145
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    Cited by:

    1. Caswell, Margriet F. & Fuglie, Keith O. & Klotz, Cassandra A., 1994. "Agricultural Biotechnology: An Economic Perspective," Agricultural Economic Reports 262025, United States Department of Agriculture, Economic Research Service.
    2. Tauer, Loren W., 1990. "Ex-ante Economic Assessment of Agriculture Biotechnology," Staff Papers 121528, Cornell University, Department of Applied Economics and Management.

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