IDEAS home Printed from https://ideas.repec.org/a/ibg/eajour/v44y2011i1-2p78-97.html
   My bibliography  Save this article

Precision Cotton Agriculture and Strategic Commercial Policies: An Analysis in Terms of Duopoly by Quality

Author

Listed:
  • Claire Baldin

    (Université de Nice - Sophia Antipolis)

Abstract

We study a Hotelling’s duopoly in world cotton market to examine the effects of Precision Agriculture’s (PA) adoption in term of strategic international trade between the United-States and Central and West Africa (CWA). We prove that US producers should be well advised to adopt PA to offer “environmental quality” cotton whereas CWA producers have a natural comparative advantage that allows them to offer a “product quality” cotton. We also argue that if the USA subsidizes PA in order to protect environment, this measure can be considered as a strategic international policy. We determine a critical subsidy level, which ousts CWA producers from the cotton market. At this subsidy level, US policy can be thought of unfair even if this policy enables them to improve the environment.

Suggested Citation

  • Claire Baldin, 2011. "Precision Cotton Agriculture and Strategic Commercial Policies: An Analysis in Terms of Duopoly by Quality," Economic Analysis, Institute of Economic Sciences, vol. 44(1-2), pages 78-97.
    • Handle: RePEc:ibg:eajour:v:44:y:2011:i:1-2:p:78-97
    as

    Download full text from publisher

    File URL: http://www.ien.bg.ac.rs/index.php/en/2011/2011-1-2
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    Strategic commercial policy; precision farming; Hotelling’s duopoly; quality’s differentiation; environment; welfare; cournot; nash equilibrium; subsidies;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F18 - International Economics - - Trade - - - Trade and Environment
    • H22 - Public Economics - - Taxation, Subsidies, and Revenue - - - Incidence
    • Q00 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - General
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ibg:eajour:v:44:y:2011:i:1-2:p:78-97. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Zorica Bozic (email available below). General contact details of provider: https://edirc.repec.org/data/ienbgyu.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.