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The economics of biotechnology under ecosystem disruption

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  • Pemsl, Diemuth E.
  • Gutierrez, Andrew P.
  • Waibel, Hermann

Abstract

Economic analysis of chemical pesticide use has shown that the interactions between plants, pests, damage control technology and state of the ecosystem are important variables to be considered. Hence, a bio-economic model was developed for the assessment of Bt variety and pesticide-based control strategies of the cotton-bollworm in China. The model simulates plant growth, the dynamics of pest populations and of natural enemies. The model predictions are used as major inputs for a stochastic micro-level profit model of alternative control strategies. Results show that: (1) productivity effects of Bt varieties and pesticide use depend on the action of natural control agents, and (2) the profitability of damage control measures increases with the severity of ecosystem disruption. The findings highlight the importance of the choice of the counterfactual scenario in the assessment of the impact of agricultural biotechnology. Also, some doubts are raised whether the high benefits of Bt cotton varieties claimed by previous studies based on cross section comparisons are realistic.

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  • Pemsl, Diemuth E. & Gutierrez, Andrew P. & Waibel, Hermann, 2008. "The economics of biotechnology under ecosystem disruption," Ecological Economics, Elsevier, vol. 66(1), pages 177-183, May.
    • Handle: RePEc:eee:ecolec:v:66:y:2008:i:1:p:177-183
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    1. Ernst-August Nuppenau, 2018. "Soil Fertility Management by Transition Matrices and Crop Rotation: On Spatial and Dynamic Aspects in Programming of Ecosystem Services," Sustainability, MDPI, vol. 10(7), pages 1-20, June.
    2. Theodoros Skevas & Spiro E. Stefanou & Alfons Oude Lansink, 2013. "Do Farmers Internalise Environmental Spillovers of Pesticides in Production?," Journal of Agricultural Economics, Wiley Blackwell, vol. 64(3), pages 624-640, September.
    3. Shahzad Kouser & David J Spielman & Matin Qaim, 2019. "Transgenic cotton and farmers’ health in Pakistan," PLOS ONE, Public Library of Science, vol. 14(10), pages 1-19, October.
    4. Frisvold, George, 2010. "Resistance Management and Sustainable Use of Agricultural Biotechnology," 14th ICABR Conference, June 16-18, 2010, Ravello, Italy 188091, International Consortium on Applied Bioeconomy Research (ICABR).
    5. Michel Fok & Naiyin Xu, 2010. "Le marché des variétés de coton-Bt : analyse de la situation en Chine dans une perspective internationale," Post-Print halshs-00455263, HAL.
    6. E.-A. Nuppenau & T.S Amjath Babu, 2009. "Apples compared to Apples: Attitudes towards cisgenic and transgenic breeds," Journal of Socio-Economics in Agriculture (Until 2015: Yearbook of Socioeconomics in Agriculture), Swiss Society for Agricultural Economics and Rural Sociology, vol. 2(1), pages 113-142.
    7. Kouser, Shahzad & Qaim, Matin, 2011. "Impact of Bt cotton on pesticide poisoning in smallholder agriculture: A panel data analysis," Ecological Economics, Elsevier, vol. 70(11), pages 2105-2113, September.
    8. Nuppenau, Ernst-August, 2011. "Linking Crop Rotation and Fertility Management by a Transition Matrix: Spatial and Dynamic Aspects in Programming of Ecosystem Service," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114600, European Association of Agricultural Economists.

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    More about this item

    JEL classification:

    • Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights

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