WHAT IS THE VALUE OF BT CORN?

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.


Issue Date:
2001
Publication Type:
Conference Paper/ Presentation
PURL Identifier:
http://purl.umn.edu/20476
Total Pages:
34
Series Statement:
Selected Paper




 Record created 2017-04-01, last modified 2017-08-24

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