Socioeconomic Impacts of Bt (Bacillus thuringiensis) Cotton

Abstract

This chapter analyzes the socioeconomic impacts of Bt cotton in an international context. Bt cotton technology has already been adopted by millions of farmers around the world, including many smallholders in developing countries. On average, farmers growing Bt cotton benefit from insecticide savings, increasingly effective yields as a result of reduced crop losses, and profit gains in spite of higher seed prices. Aggregate household incomes rise, for poor and vulnerable farmers as well. Hence, Bt cotton contributes to poverty reduction and rural development. Macroeconomic modeling approaches confirm that there are also sizeable aggregate growth effects and welfare gains. In addition to these socioeconomic impacts, Bt technology is associated with important positive environmental and health externalities.