Bt Cotton Benefits, Costs, and Impacts in China

Abstract

The overall goal of this research is to reexamine findings of earlier efforts that analyzed the effect of Bt cotton adoption in 1999 with two follow-up surveys conducted in 2000 and 2001. Our survey data on yields and econometric analyses indicate that the adoption of Bt cotton continued to increase output per hectare in 2000 and 2001 and that the yield gains extended to all provinces in our sample. More importantly, Bt cotton farmers also increased their incomes by reducing their use of pesticides and labor inputs. Finally, survey data show that Bt cotton continues to have positive environmental impacts by reducing pesticide use. Additionally, we provide evidence that farmers have fewer health problems because of reduced pesticide use. We conclude with evidence that China is not unique and that there are lessons for other developing countries.