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

Hina Nazli, Rakhal Sarker, Karl Meilke and David Orden

No 61180, 2010 Annual Meeting, July 25-27, 2010, Denver, Colorado from Agricultural and Applied Economics Association

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.

Keywords: Crop Production/Industries; Research and Development/Tech Change/Emerging Technologies (search for similar items in EconPapers)
Pages: 2
Date: 2010
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea10:61180

DOI: 10.22004/ag.econ.61180

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