Valuing Transgenic Cotton Technologies Using a Risk/Return Framework

Stochastic Efficiency with Respect to a Function (SERF) is used to rank transgenic cotton technology groups and place an upper and lower bound on their value. Yield and production data from replicated plot experiments are used to build cumulative distribution functions of returns for nontransgenic, Roundup Ready, Bollgard, and stacked gene cotton cultivars. Analysis of Arkansas data indicated that the stacked gene and Roundup Ready technologies would be preferred by a large number of risk neutral and risk averse producers as long as the costs of the technology and seed are below the lower bounds calculated in this manuscript.


Issue Date:
2008-12
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/47257
Published in:
Journal of Agricultural and Applied Economics, Volume 40, Number 3
Page range:
767-775
Total Pages:
9
JEL Codes:
Q12; Q16




 Record created 2017-04-01, last modified 2017-04-28

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