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Estimating the Adoption of Bt Eggplant in India: Who Benefits from Public-Private Partnership?

  • Krishna, Vijesh V.
  • Qaim, Matin

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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Paper provided by International Association of Agricultural Economists in its series 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia with number 25311.

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Date of creation: 2006
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Handle: RePEc:ags:iaae06:25311
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  1. Qaim, Matin, 2003. "Bt Cotton in India: Field Trial Results and Economic Projections," World Development, Elsevier, vol. 31(12), pages 2115-2127, December.
  2. Marra, Michele C. & Hubbell, Bryan J. & Carlson, Gerald A., 2001. "Information Quality, Technology Depreciation, And Bt Cotton Adoption In The Southeast," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 26(01), July.
  3. Wilson, Clevo & Tisdell, Clem, 2001. "Why farmers continue to use pesticides despite environmental, health and sustainability costs," Ecological Economics, Elsevier, vol. 39(3), pages 449-462, December.
  4. Matin Qaim & Arjunan Subramanian & Gopal Naik & David Zilberman, 2006. "Adoption of Bt Cotton and Impact Variability: Insights from India," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 28(1), pages 48-58.
  5. Rausser, Gordon & Simon, Leo & Ameden, Holly, 2000. "Public-private alliances in biotechnology: Can they narrow the knowledge gaps between rich and poor?," Food Policy, Elsevier, vol. 25(4), pages 499-513, August.
  6. Carl E. Pray & Anwar Naseem, 2003. "The Economics of Agricultural Biotechnology," Working Papers 03-07, Agricultural and Development Economics Division of the Food and Agriculture Organization of the United Nations (FAO - ESA).
  7. Feder, Gershon & Just, Richard E & Zilberman, David, 1985. "Adoption of Agricultural Innovations in Developing Countries: A Survey," Economic Development and Cultural Change, University of Chicago Press, vol. 33(2), pages 255-98, January.
  8. Bradford L. Barham & Jeremy D. Foltz & Sunung Moon & Douglas Jackson-Smith, 2004. "A Comparative Analysis of Recombinant Bovine Somatotropin Adoption across Major U.S. Dairy Regions," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 26(1), pages 32-44.
  9. John Crooker & Joseph Herriges, 2004. "Parametric and Semi-Nonparametric Estimation of Willingness-to-Pay in the Dichotomous Choice Contingent Valuation Framework," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 27(4), pages 451-480, April.
  10. Naylor, Rosamond L. & Falcon, Walter P. & Goodman, Robert M. & Jahn, Molly M. & Sengooba, Theresa & Tefera, Hailu & Nelson, Rebecca J., 2004. "Biotechnology in the developing world: a case for increased investments in orphan crops," Food Policy, Elsevier, vol. 29(1), pages 15-44, February.
  11. Alok Bohara & Joe Kerkvliet & Robert Berrens, 2001. "Addressing Negative Willingness to Pay in Dichotomous Choice Contingent Valuation," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 20(3), pages 173-195, November.
  12. 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.
  13. Donald M. McLeod & Olvar Bergland, 1999. "Willingness-to-Pay Estimates Using the Double-Bounded Dichotomous-Choice Contingent Valuation Format: A Test for Validity and Precision in a Bayesian Framework," Land Economics, University of Wisconsin Press, vol. 75(1), pages 115-125.
  14. Payne, Tim & Fernandez-Cornejo, Jorge & Daberkow, Stan G., 2003. "Factors Affecting The Likelihood Of Corn Rootworm Bt Seed Adoption," 2003 Annual Meeting, July 13-16, 2003, Denver, Colorado 35983, Western Agricultural Economics Association.
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