Abstract
I study a phenomenon of hastened technology adoption facilitated by a negative spatial externality. GMO seeds have been engineered to withstand the application of particular weedkillers: farmers can use them in-crop, killing the weeds, leaving the crop unscathed. I show that the adoption of such seeds generates negative externalities on downwind neighbors, increasing the probability of the adoption of the same seed by 29% as well as a conversion of cropland to different crops able to withstand the weedkiller. Overall yields remained unchanged as the benefits of the weedkiller on yields are offset by the negative effects of crop failures for neighbors. Consequences of such rapid adoption include possible monopolization on the seed market.
Keywords
Technology adoption; spatial externalities; land use, pesticides;
JEL codes
- Q5: Environmental Economics
- Q15: Land Ownership and Tenure • Land Reform • Land Use • Irrigation • Agriculture and Environment
- Q16: R&D • Agricultural Technology • Biofuels • Agricultural Extension Services
- O33: Technological Change: Choices and Consequences • Diffusion Processes
Reference
Anouch Missirian, “Yes, in your backyard: Forced technological adoption and spatial externalities”, TSE Working Paper, n. 24-1545, June 2024.
See also
Published in
TSE Working Paper, n. 24-1545, June 2024