Yes, in your backyard: Forced technological adoption and spatial externalities

Anouch Missirian ()
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Anouch Missirian: TSE-R - Toulouse School of Economics - UT Capitole - Université Toulouse Capitole - UT - Université de Toulouse - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement

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Abstract: I study a phenomenon of hastened technology adoption facilitated by a negative spatial externality. GMO seeds have been engineered to withstand the application of particular weedkillers: farmers can use them in-crop, killing the weeds, leaving the crop unscathed. I show that the adoption of such seeds generates negative externalities on downwind neighbors, increasing the probability of the adoption of the same seed by 29% as well as a conversion of cropland to different crops able to withstand the weedkiller. Overall yields remained unchanged as the benefits of the weedkiller on yields are offset by the negative effects of crop failures for neighbors. Consequences of such rapid adoption include possible monopolization on the seed market.

Keywords: Technology adoption; Spatial externalities; Land use; Pesticides (search for similar items in EconPapers)
Date: 2024-06-05
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