Modelling of Bt Corn Production under Choice of Abatement Specification

Xiangdong Shi and Terrance Hurley

No 235786, 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts from Agricultural and Applied Economics Association

Abstract: For modelling Bt corn production, we proposed a joint abatement function to capture pest life cycle. Simulation of pest adaptation to popular Bt corn varieties was developed and applied to generate random sample of abatement, where in-field parameters were adopted in favor of practical corn production. On the basis, logistic model was used to fit the sample data. The estimates were compared to those from exponential model for choice of abatement specification. At last, Cobb-Douglas production model was integrated with the pre-estimated abatement function along with farm level data and distribution of corn growers’ choices, where instrument variables estimator and delta method were adopted to solve simultaneity problem induced by farm level data. The estimated marginal net return was positive, suggesting that Bt corn as pesticide is underutilized. However, the value kept decline in recent three years. We attributed the decline of marginal net return to the widespread adoption of new Bt corn varieties with blended refuge, and the insect resistance management would benefit from it.

Keywords: Crop Production/Industries; Environmental Economics and Policy; Production Economics; Productivity Analysis (search for similar items in EconPapers)
Pages: 51
Date: 2016-05-25
New Economics Papers: this item is included in nep-dcm and nep-env
References: Add references at CitEc
Citations:

Downloads: (external link)
https://ageconsearch.umn.edu/record/235786/files/M ... pecification_Shi.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea16:235786

DOI: 10.22004/ag.econ.235786

Access Statistics for this paper

More papers in 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts from Agricultural and Applied Economics Association Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().