ABSTRACT

This study uses a 3-region model to estimate the impacts of Bt cotton adoption in the United States and China on world price, returns to cotton purchasers, and returns to cotton purchasers in the U.S., China and the Rest of World. Combined adoption of Bt cotton in China and the United States increased world cotton production by 0.7 percent, but increased production reduced the world cotton price by 1.4 cents per pound. Net global economic benefits of adoption were nearly $900 million in 2001.