ABSTRACT OF PAPER
Title: An Ex-Ante Evaluation of the Economic Impact of Bt Cotton Adoption by Spanish Farmers Facing the EU Cotton Sector Reform
Author: Ceddia Graziano
Cotton production in the European Union (EU) is limited to areas of Greece and Southern Spain (Andalusia). The 2004 reform of the EU cotton policy severely affects the profitability of the crop. In this paper we analyse how the introduction of genetically modified (GM), insect-resistant cotton varieties (Bt cotton) might help EU cotton farmers to increase profitability and therefore face the cotton policy reform. We first study farmers' attitudes towards adoption of Bt cotton varieties through a survey conducted in Andalusia (Southern Spain). The results show a positive attitude of Andalusian cotton farmers towards the Bt cotton varieties. Second we perform an ex-ante analysis of the effects of introducing Bt cotton in Andalusia. Finally we integrate the analysis of the effects of Bt cotton with the analysis of the EU cotton reform. Our results show that despite the significant economic benefits of Bt cotton, the current policy reform is likely to jeopardize the profitability of cotton production in the EU.
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