Estimating the Demand for a New Technology: Bt Cotton and Insecticide Policies
15 Pages Posted: 24 Mar 2020
There are 2 versions of this paper
Estimating the Demand for a New Technology: Bt Cotton and Insecticide Policies
Date Written: February 2000
Abstract
This article examines the potential demand for Bt cotton in the Southeast from information gathered in the first year of commercialization. We combine revealed preference (RP) data on adoption of Bt cotton varieties with stated preference (SP) data on willingness to adopt to estimate demand using a double‐bounded maximum likelihood procedure. Using estimated demand equations, we simulate the costs of reducing conventional insecticide applications through subsidization of Bt cotton. Results indicate that reducing cotton insecticide applications by 40% in the Southeast would require a $@@‐@@21/acre subsidy, with total annual program costs between $@@‐@@53 million and $@@‐@@60 million.
Keywords: Bt cotton, biotechnology, demand, insecticide policy, revealed preferences, stated preferences, technology adoption, Q160
Suggested Citation: Suggested Citation
Do you have a job opening that you would like to promote on SSRN?
Estimating the Demand for a New Technology: Bt Cotton and Insecticide Policies
This is a Wiley-Blackwell Publishing paper. Wiley-Blackwell Publishing charges $42.00 .
File name: AJAE.pdf
Size: 0K
If you wish to purchase the right to make copies of this paper for distribution to others, please select the quantity.
