Genetically Modified Crops, Corporate Pricing Strategies, and Farmers' Adoption: The Case of Bt Cotton in Argentina
Abstract
This article analyzes adoption and impacts of Bt cotton in Argentina against the background of monopoly pricing. Based on survey data, it is shown that the technology significantly reduces insecticide applications and increases yields; however, these advantages are curbed by the high price charged for genetically modified seeds. Using the contingent valuation method, it is shown that farmers' average willingness to pay is less than half the actual technology price. A lower price would not only increase benefits for growers, but could also multiply company profits, thus, resulting in a Pareto improvement. Implications of the sub‐optimal pricing strategy are discussed.
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These companies hold intellectual property rights to 95% of cotton and corn varieties and 84% of soybean varieties.
“These companies hold intellectual property rights to 95% of cotton and corn varieties and 84% of soybean varieties ( 29 ).”
From Environmental impacts of genetically modified crops (2024) · cites this paper as [29]
In 2020, four companies controlled over half of the world's seed market.
“In 2020, four companies controlled over half of the world's seed market.”
From Environmental impacts of genetically modified crops (2024) · cites this paper as [29]
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Meijer, E., & Stewart, R. B. (2004) · Review of European Community & International Environmental Law · doi:10.1111/j.1467-9388.2004.00406.x · Cited by 11 · see citing works
Scatasta, S., Wesseler, J., & Demont, M. (2006) · Socio-Environmental Systems Modeling · Cited by 11 · see citing works
- Authors
- Qaim, M., & de Janvry, A.
- Affiliations
- University of Bonn (DE)
- University of California at Berkeley
- ORCID
- Qaim, Matin
- Venue
- American Journal of Agricultural Economics
- Publisher
- Wiley
- Published
- 2003-11
- Volume
- 85
- Issue
- 4
- Pages
- 814-828
- ISSN
- 0002-9092 (ISSN-L)
- 1467-8276
- OpenAlex
- W2149923608
- Cited by
- 212
- References
- 18
- Citations by year
- 2026: 4 · 2025: 2 · 2024: 2 · 2023: 1 · 2022: 3 · 2021: 7 · 2020: 4 · 2019: 11 · 2018: 7 · 2017: 5 · 2016: 4 · 2015: 6 · 2014: 12 · 2013: 10 · 2012: 10
- FWCI
- 19.72
- Type
- journal article
- Language
- en
- Open access
- closed
- Locations
- American Journal of Agricultural Economics (publishedVersion)
- RePEc: Research Papers in Economics (submittedVersion)
- GRO (submittedVersion)
- Funders
- Deutsche Forschungsgemeinschaft
- Rockefeller Foundation
- Topics
- Life Sciences › Agricultural and Biological Sciences › Plant Science › Genetically Modified Organisms Research
- Life Sciences › Agricultural and Biological Sciences › General Agricultural and Biological Sciences › Agricultural Innovations and Practices
- Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Economic and Environmental Valuation
- Keywords
- Bt cotton, genetically modified crops, seed pricing, monopoly pricing, technology adoption, willingness to pay, insecticide application, crop yield, Pareto improvement, Argentina
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