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Risk and the Value of Bt Corn
Author(s) -
Hurley Terrance M.,
Mitchell Paul D.,
Rice Marlin E.
Publication year - 2004
Publication title -
american journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.949
H-Index - 111
eISSN - 1467-8276
pISSN - 0002-9092
DOI - 10.1111/j.0092-5853.2004.00583.x
Subject(s) - genetically modified maize , economics , value (mathematics) , econometrics , agricultural economics , genetically modified crops , mathematics , statistics , biology , gene , biochemistry , transgene
A conceptual model is developed to evaluate the effect of Bt corn on risk. Results highlight the importance of distinguishing between marginal and aggregate risk effects and demonstrate that the effect of Bt corn on risk depends crucially on the price paid for the technology. Empirical results show that, depending on the price, Bt corn can be marginally risk increasing or decreasing and can either increase or decrease corn acreage. Also, depending on the price, Bt corn can provide a risk benefit to farmers, even when Bt corn is risk increasing.