publication . Other literature type . Preprint . 2001

WHAT IS THE VALUE OF BT CORN?

Hurley, Terrance M.; Mitchell, Paul D.; Rice, Marlin E.; Hurley, Terrance M.; Mitchell, Paul D.; Rice, Marlin E.;
English
  • Published: 01 Jan 2001
  • Publisher: Unknown
Abstract
A common perception is that the value of Bt corn arises from two components-Bt corn increases expected profit and reduces profit variability. This perception encourages farmers and the policy makers to add a risk benefit to estimates of the value of Bt corn to account for the variability reduction. However, a conceptual model generates a useful decomposition of the value of Bt corn and a condition determining the impact of Bt corn on profit variability. An empirical model finds that Bt corn increases profit variability and thus decreases the value of Bt corn by 10-25% depending on risk preferences.
Subjects
free text keywords: Crop Production/Industries,, Crop Production/Industries
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publication . Other literature type . Preprint . 2001

WHAT IS THE VALUE OF BT CORN?

Hurley, Terrance M.; Mitchell, Paul D.; Rice, Marlin E.; Hurley, Terrance M.; Mitchell, Paul D.; Rice, Marlin E.;