Ecosystem Impacts of Pesticide Reductions Through Bt Cotton Adoption

20 Pages Posted: 18 Jan 2017

See all articles by Prakashan Chellattan Veettil

Prakashan Chellattan Veettil

International Rice Research Institute - Agricultural Economics, Social Sciences Division

Vijesh V. Krishna

University of Goettingen (Gottingen)

Matin Qaim

University of Goettingen (Gottingen)

Date Written: January 2017

Abstract

This article examines the ecosystem impacts of transgenic Bt cotton technology resulting from reduced chemical pesticide use. Employing unique panel data from smallholder farmers in India, negative environmental and health effects of pesticide use are quantified with the environmental impact quotient (EIQ), with and without Bt technology. An environmentally sensitive dynamic production function is estimated, treating the environmental risk of pesticide toxicity as an undesirable output in the production process. Negative externalities are significantly lower in Bt than in conventional cotton. The reduction in EIQ through Bt technology adoption has increased from 39 per cent during 2002–2004 to 68 per cent during 2006–2008. Bt adoption has also contributed to higher environmental efficiency. Environmental efficiency is influenced by the quality of Bt technology: high‐quality Bt seeds are associated with higher environmental efficiency than lower‐quality seeds.

Keywords: Bt cotton, directional distance function, environmental impact quotient, India, pesticide externality

Suggested Citation

Veettil, Prakashan Chellattan and Krishna, Vijesh V. and Qaim, Matin, Ecosystem Impacts of Pesticide Reductions Through Bt Cotton Adoption (January 2017). Australian Journal of Agricultural and Resource Economics, Vol. 61, Issue 1, pp. 115-134, 2017, Available at SSRN: https://ssrn.com/abstract=2901205 or http://dx.doi.org/10.1111/1467-8489.12171

Prakashan Chellattan Veettil (Contact Author)

International Rice Research Institute - Agricultural Economics, Social Sciences Division ( email )

LosBaƱos
Laguna
Philippines

Vijesh V. Krishna

University of Goettingen (Gottingen) ( email )

Platz der Gottinger Sieben 3
Gottingen, D-37073
Germany

Matin Qaim

University of Goettingen (Gottingen) ( email )

Platz der Gottinger Sieben 3
Gottingen, D-37073
Germany

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