EconPapers    
Economics at your fingertips  
 

Economic and Environmental Impacts of Bt Cotton: Evidence from Pakistan

Khuda Bakhsh ()

No 79, Working papers from The South Asian Network for Development and Environmental Economics

Abstract: This study estimates the benefits from adopting Bt cotton seeds in Punjab, Pakistan over two cropping seasons in 2008 and 2009. This study uses reduced-form panel models to determine the average effects of Bt cotton technology on short-run profits, yields and farm inputs.This reduced form approach controls for biases resulting from selfselection and endogenous farm inputs. The study shows that farmers grow Bt cotton because it provides resistance against cotton bollworms infestations and gives higher yields. On average, econometric estimation suggests that Bt adopting farmers receive 10 percent higher yields per hectare, reduce per hectare pesticide use by some 22 percent, and increase per hectare use of irrigation water by 8 percent as a result of a conversion of 78% of cropped area into Bt cotton. Our estimates of the increase in cotton yield are below estimates from previous studies conducted in Pakistan and India, which do not use panel methods. Allowing more Bt cotton varieties and ensuring the availability of quality Bt cotton seeds in the market is likely to lead to further increase in the private benefits from Bt cotton, but raises legitimate concerns related to irrigation water availability and biodiversity losses.

Keywords: Bt cotton; Endogeneity; Self-selection bias; Fixed effect; Random effects; Reduced-form panel models; Pakistan (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-agr, nep-cdm and nep-env
References: Add references at CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://www.sandeeonline.org/uploads/documents/publ ... _79_Khuda_Bakhsh.pdf

Related works:
Working Paper: Economic and Environmental Impacts of Bt Cotton: Evidence from Pakistan (2013) Downloads
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:snd:wpaper:79

Access Statistics for this paper

More papers in Working papers from The South Asian Network for Development and Environmental Economics South Asian Network for Development and Environmental Economics PO Box: 8975, EPC: 1056 Kathmandu, Nepal.
Bibliographic data for series maintained by Anuradhak ().

 
Page updated 2022-01-17
Handle: RePEc:snd:wpaper:79