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Estimation of Spillover Effects from Large Scale Adoption of Transgenic (Bt) Corn in the Philippines

Author

Listed:
  • Brown, Zachary
  • Connor, Lawson
  • Rejesus, Rod
  • Jose, Yorobe

Abstract

This paper proposes the application of an econometric methodology developed in the environmental and urban economics literatures for studying spatial congestion and agglomeration to the context of agricultural pest control and technology adoption. The methodology allows the identification of spillover effects, either from bioeconomic feedbacks or social interactions, in discrete choice econometric models. We apply this framework to study area-level adoption and potential feedbacks from individuals’ decisions to adopt pesticidal transgenic corn, using a panel dataset from the Philippines. In a conceptual model, we show that a bioeconomic feedback through pest suppression will manifest as congestion effect. Identification in the econometric model is achieved by combining fixed effect conditional logit estimation with instrumental variable (IV) methods. Applying this econometric approach, we find evidence for a congestion spillover associated with the adoption of transgenic corn in the Philippines.

Suggested Citation

  • Brown, Zachary & Connor, Lawson & Rejesus, Rod & Jose, Yorobe, 2016. "Estimation of Spillover Effects from Large Scale Adoption of Transgenic (Bt) Corn in the Philippines," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 239267, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea16:239267
    DOI: 10.22004/ag.econ.239267
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    References listed on IDEAS

    as
    1. Timmins, Christopher & Murdock, Jennifer, 2007. "A revealed preference approach to the measurement of congestion in travel cost models," Journal of Environmental Economics and Management, Elsevier, vol. 53(2), pages 230-249, March.
    2. Patrick Bayer & Christopher Timmins, 2007. "Estimating Equilibrium Models Of Sorting Across Locations," Economic Journal, Royal Economic Society, vol. 117(518), pages 353-374, March.
    3. Hicks, Robert L. & Horrace, William C. & Schnier, Kurt E., 2012. "Strategic substitutes or complements? The game of where to fish," Journal of Econometrics, Elsevier, vol. 168(1), pages 70-80.
    4. Allen Klaiber, H. & Phaneuf, Daniel J., 2010. "Valuing open space in a residential sorting model of the Twin Cities," Journal of Environmental Economics and Management, Elsevier, vol. 60(2), pages 57-77, September.
    Full references (including those not matched with items on IDEAS)

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    Keywords

    Crop Production/Industries; Environmental Economics and Policy; Industrial Organization; Risk and Uncertainty;
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