Tarnishing Silver Bullets: Bt Technology Adoption, Bounded Rationality and the Outbreak of Secondary Pest Infestations in China
As with other technologies, adoption of Bt seed requires technology specific knowledge. Growing secondary pest populations have slowly eroded the benefits of Bt technology in China. We illustrate the effects of introducing Bt technology among farmers with an imperfect knowledge of secondary pest problems using a simple dynamic model. The stochastic dominance tests based on primary household data from 1999-2001 and 2004 in China provide strong evidence that secondary pests, if unanticipated, could completely erode all benefits from Bt cotton cultivation. Our empirical tests also suggest that planting refuge concurrent with Bt adoption provides for the sustainable development of Bt technology.
|Date of creation:||2006|
|Date of revision:|
|Contact details of provider:|| Postal: 555 East Wells Street, Suite 1100, Milwaukee, Wisconsin 53202|
Phone: (414) 918-3190
Fax: (414) 276-3349
Web page: http://www.aaea.org
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Feder, G. & Regev, U., 1975. "Biological interactions and environmental effects in the economics of pest control," Journal of Environmental Economics and Management, Elsevier, vol. 2(2), pages 75-91, December.
- Matin Qaim & Alain de Janvry, 2003. "Genetically Modified Crops, Corporate Pricing Strategies, and Farmers' Adoption: The Case of Bt Cotton in Argentina," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(4), pages 814-828.
- Boggess, William G. & Cardelli, Dino J. & Barfield, C.S., 1985. "A Bioeconomic Simulation Approach To Multi-Species Insect Management," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 17(02), December.
- Cecilia Chaing & Lindsay McSweeney, 2010. "A Behavioral Model of Rational Choice," CPI Journal, Competition Policy International, vol. 6.
- Herbert A. Simon, 1955. "A Behavioral Model of Rational Choice," The Quarterly Journal of Economics, Oxford University Press, vol. 69(1), pages 99-118.
- Michael J. Livingston & Gerald A. Carlson & Paul L. Fackler, 2004. "Managing Resistance Evolution in Two Pests to Two Toxins with Refugia," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(1), pages 1-13.
- Schultz, Theodore W, 1975. "The Value of the Ability to Deal with Disequilibria," Journal of Economic Literature, American Economic Association, vol. 13(3), pages 827-46, September.
- Ragozin, David L. & Brown, Gardner Jr., 1985. "Harvest policies and nonmarket valuation in a predator -- prey system," Journal of Environmental Economics and Management, Elsevier, vol. 12(2), pages 155-168, June.
- Simon, Herbert A, 1978. "Rationality as Process and as Product of Thought," American Economic Review, American Economic Association, vol. 68(2), pages 1-16, May.
When requesting a correction, please mention this item's handle: RePEc:ags:aaea06:21230. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search)
If references are entirely missing, you can add them using this form.