Simultaneous Diffusion of Herbicide Resistant Cotton and Conservation Tillage

Abstract

This study used state-level data from 1997-2002 to econometrically estimate factors explaining the diffusion of two technologies by US cotton producers: herbicide-resistant (HR) cotton seed varieties and conservation tillage. A simultaneous equation model is estimated to examine complementarities between the two technologies. Based on results from a three-stage least squares model, the null hypothesis that diffusion of one technology is independent of diffusion of the other is rejected. Elasticities calculated at sample means indicate that a 1% increase in a state's adoption rate for HR cotton increases the state's adoption rate for conservation tillage by 0.48%. A 1% increase in the adoption rate of conservation tillage increases the adoption rate of HR cotton by 0.16%.