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BT COTTON IN ARGENTINA: ANALYZING ADOPTION AND FARMERS' WILLINGNESS TO PAY

Matin Qaim and Alain de Janvry ()

No 19710, 2002 Annual meeting, July 28-31, Long Beach, CA from American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association)

Abstract: Unlike several other countries, where Bt cotton is being rapidly adopted, in Argentina technology diffusion has been rather slow. Based on recent survey data, it is shown that the technology significantly reduces insecticide applications and increases yields; however, these advantages are curbed by the high price charged for genetically modified seeds. Using the contingent valuation method, it is shown that farmer's average willingness to pay for Bt cotton is less than half the actual market price. A lower price would not only increase benefits for cotton growers, but could also multiply the profits of the monopoly seed producer, thus resulting in a Pareto improvement. Implications of the sub-optimal pricing strategy are discussed.

Keywords: Crop Production/Industries; Research and Development/Tech Change/Emerging Technologies (search for similar items in EconPapers)
Date: 2002
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