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GM Technology Adoption, Production Risk and On-farm Varietal Diversity

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  • Krishna, Vijesh V.
  • Zilberman, David
  • Qaim, Matin

Abstract

This paper examines the impact of transgenic technology adoption on varietal diversity. Transgenic pest-resistant varieties are hypothesized to reduce farmers’ demand for on-farm diversity through an act of substitution, as both serve as production risk reducing instruments. This adverse agro-biodiversity impact might be partially counteracted by an expanding seed sector, supplying a large number of transgenic varieties. The case of Bt cotton in India is taken for empirical illustration. The production function analyses show that both Bt technology and on-farm varietal diversity enhance yield, while reducing the production risk. With few Bt varieties available in the first years, technology adoption entailed a reduction in on-farm varietal diversity. This effect, however, was partially offset by more Bt varieties becoming available over time.

Suggested Citation

  • Krishna, Vijesh V. & Zilberman, David & Qaim, Matin, 2009. "GM Technology Adoption, Production Risk and On-farm Varietal Diversity," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 49173, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea09:49173
    DOI: 10.22004/ag.econ.49173
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    Keywords

    Agricultural and Food Policy; Crop Production/Industries; Environmental Economics and Policy; Farm Management; Productivity Analysis; Risk and Uncertainty;
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