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Distribution of Benefits and Adoption of Bt Cotton in Pakistan: Ex-ante Analysis

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  • Nazli, Hina
  • Sarker, Rakhal
  • Meilke, Karl D.
  • Orden, David

Abstract

This poster presents the potential impact of Bt cotton adoption in Pakistan. The size and distribution of economic benefits from the commercial adoption of Bt cotton in Pakistan are examined under four hypothetical scenarios. The adjusted economic surplus model is used to measure total benefits and their distribution between producers, consumers and technology innovators. To account for uncertainty in key parameters, the stochastic simulation techniques is applied. The results show that the total net benefits of adopting Bt cotton in Pakistan are large. As a result of increase in production, farmers get considerable benefits despite a decline in price. The share of benefits to innovators is small. The results indicate that the total cost of adopting latest Bt technology to the government of Pakistan is less than the benefits that farmers and consumers of all cotton-textile chain can receive. This is true even if the decline in pesticide expenditure and increase in yield are not very large.

Suggested Citation

  • Nazli, Hina & Sarker, Rakhal & Meilke, Karl D. & Orden, David, 2010. "Distribution of Benefits and Adoption of Bt Cotton in Pakistan: Ex-ante Analysis," 2010 Annual Meeting, July 25-27, 2010, Denver, Colorado 61180, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea10:61180
    DOI: 10.22004/ag.econ.61180
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    References listed on IDEAS

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    1. José Benjamin Falck-Zepeda & Greg Traxler & Robert G. Nelson, 2000. "Surplus Distribution from the Introduction of a Biotechnology Innovation," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(2), pages 360-369.
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