Betting on cotton: Potential payoffs and economic risks of adopting transgenic cotton in West Africa
Jose Benjamin Falck-Zepeda,
J Horna () and
Melinda Smale ()
Authors registered in the RePEc Author Service: José Benjamin Falck Zepeda ()
African Journal of Agricultural and Resource Economics, 2008, vol. 02, issue 2, 20
Cotton is the largest source of export receipts in several West African nations where yields are declining and pesticide use is rising. Although there may be payoffs to introducing genetically modified Bt (Bacillus thurigiensis) cotton, limited information is available to predict its potential economic impact and there is uncertainty about its performance. Recognizing these constraints, we use an economic surplus model augmented with stochastic simulation to estimate ex ante the impact and distribution of benefits from Bt cotton. We consider the effects of adoption on both yields and abating crop damage, and offer scenarios depicting the policy options faced by West African stakeholders. The findings indicate that although the total net benefits of adopting Bt cotton may be relatively small for the countries studied, these countries would be worse off without the technology. Our approach, which incorporates variability and uncertainty, may be useful in decisions about investments in crop biotechnology.
Keywords: Crop; Production/Industries (search for similar items in EconPapers)
References: Add references at CitEc
Citations: View citations in EconPapers (8) Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:ags:afjare:56962
Access Statistics for this article
More articles in African Journal of Agricultural and Resource Economics from African Association of Agricultural Economists Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().