Refuge Policies to Manage the Resistance of Pest Population to Genetically Modified (GM) Crops

The development of Genetically Modified (GM) crop varieties has arguably been the most successful application of agricultural biotechnology research to date. However, the biotechnology is a two-edged sword. Behinds the great success, there are also a lot of concerns about the negative impact of the GM crops. One of the major concerns is the buildup of the resistance in the pest population. Even though refuge policies have been implemented in most of the countries to mange the development of the resistance, all the previous empirical analyses have only focused only on the United States. There is very little empirical work that has focused on other countries, especially developing countries. The overall goal of my study is to analyze, theoretical and empirically, the optimal refuge policy to mange the buildup of the resistance in a developing county. To narrow the scope of the research, I use Bacillus thuringiensis (Bt) cotton in China as a case study.genetically modified crops, refuge policies

Biotechnology as an alternative to chemical pesticides: a case study of Bt cotton in China

The overall goal of this study is to determine the extent by which genetically engineered (GE) crops in China can lead to reductions of pesticide use, the nature and source of the reductions, and whether or not there are any non-pecuniary externalities. One of the first studies of the effect of plant biotechnology on poor farmers, the study is based on a data set collected by the authors in 2000 in North China. The paper¡¯s descriptive, budget and multivariate analysis find that Bt cotton significantly reduces the number of sprayings, the quantity of pesticides used and the level of pesticide expenditures. All Bt cotton varieties¡ªboth those produced by foreign life science companies and those created by China¡¯s research system are equally effective. In addition to these input-reducing effects, the paper also demonstrates that such reductions in pesticides also likely lead to labour savings, more efficient overall production, as well as positive health and environmental impacts.Chemical pesticides, Bt cotton, Genetically engineered (GE) crops

Transgenic varieties and productivity of smallholder cotton farmers in China

Genetically modified cotton varieties have greater production efficiency for smallholders in farming communities in China. We also find that the adoption of Bacillus thuringiensis (Bt) cotton varieties leads to a significant decrease in the use of pesticides. Hence, we demonstrate that Bt cotton appears to be an agricultural technology that improves both production efficiency and the environment. In terms of policies, our findings suggest that the government should investigate whether or not they should make additional investments to spread Bt to other cotton regions and to other crops.Crop Production/Industries,

SMALL HOLDERS, TRANSGENIC VARIETIES, AND PRODUCTION EFFICIENCY: THE CASE OF COTTON FARMERS IN CHINA

The overall goal of this study is to measure the effect of the impact that genetically modified cotton varieties have had on the production efficiency of small holders in farming communities in China. We also find that the adoption of Bt cotton varieties leads to a significant decrease in the use of pesticides. Hence, we demonstrate that Bt cotton appears to be an agricultural technology that improves both production efficiency and the environment. In terms of policies, our findings suggest that the government should investigate whether or not they should make additional investments to spread Bt to other cotton regions and to other crops.Farm Management, Resource /Energy Economics and Policy,

Impact of Bt Cotton in China

A sample of 283 cotton farmers in Northern China was surveyed in December 1999. Farmers that used cotton engineered to produce the Bacillus thuringiensis (Bt) toxin substantially reduced the use of pesticide without reducing the output/ha or quality of cotton. This resulted in substantial economic benefits for small farmers. Consumers did not benefit directly. Farmers obtained the major share of benefits and because of weak intellectual property rights very little went back to government research institutes or foreign firms that developed these varieties. Farmers using Bt cotton reported fewer pesticide poisonings than those using conventional cotton.biotechnology, cotton, Asia, China, agriculture, economics

Dynamically optimal strategy to manage resistance to genetically modified (GM) crops

This paper uses a simple model of evolution of pest population and pest resistance to characterize the socially optimal refuge strategy to manage pest’s resistance to genetically modified (GM) crops. The technical part of this paper extends previous theoretical economic analyses of treatment by addressing the optimal path to the equilibrium. In this study, we not only show, using detailed theoretical analyses of the characteristics of the steady state, but also analytically and numerically results characterizing the optimal control paths that lead to the final equilibria. We also study the initial circumstances under which a synthesized interventionist control is optimal and the initial circumstances under which an ecological control (zero control) is optimal

The Impact of Agricultural Service on Grain Production in China

The development of agricultural services was the most important change in China’s agricultural production in the past 20 years. Using nationally representative provincial-level panel data, this study shows that agricultural service has a positive impact on technical efficiency at a significance level of 0.06. Based on this study, if the share of agricultural service cost increases by 1%, technical efficiency will increase by 0.35%. In other words, this study provides an empirical explanation of the positive impact of agricultural service on productivity. Due to the heterogeneity of agricultural service, technical efficiency in Eastern China and major grain production regions is higher than that in other regions. Finally, this study confirms the convergence of technical change in China’s grain production

The Heterogeneous Effects of Central and Local Subsidies on Firms’ Innovation

Four decades of rapid economic growth have enabled the Chinese government to dedicate more resources to research and development. China is the world’s second largest spender on food and agricultural research in terms of absolute expenditures and the largest investor on a purchasing power parity basis. Using a unique panel dataset collected in 2019 in China’s seed company and fixed effect models, this study analyzes the heterogeneous effects of central subsidies and local subsidies. Specifically, this study first tests whether government subsidies have a positive impact on firms’ innovation. Then, this study answers whether the impact of local subsidies differs from that of central subsidies. The estimation results show that the central subsidies positively contribute to firm’s innovation, while the impact of local subsidies on firms’ innovation has not been confirmed. Further analysis shows that local subsidies positively affect firms’ economic performance. That is, rather than focusing on research capacity, local governments are more concerned about firms’ current economic performance due to the performance-based promotion scheme in China. Based on this study, local governments should implement similar methods to those of the central government in research project funding and criteria for selecting research projects to promote firms’ innovation