An econometric analysis of regional adoption patterns of Bt maize in Germany

Abstract

In this study, our goal is to identify and explain the underlying factors that drive regional adoption of Bt maize MON810 in Germany. Since regional differences cannot be explained by the occurrence of the target pest alone, we assume that under the given regulatory framework for genetically modified (GM) crop production in Germany, farm structures as well as the sociopolitical environment have also influenced regional adoption rates during the past years. Following a description of the relevant legal and economic framework in Germany, we develop theoretical hypotheses for regional variation in Bt maize adoption and test them econometrically with unique data at the federal state (Laender) and county (Landkreis) level. According to our analysis at the federal state level, the maize acreage per farm is the main driver of Bt maize adoption. In addition, there are signs that public opposition to GM cultivation as measured by membership in the German Friends of the Earth association significantly dampens GM cultivation. At the level of Brandenburg counties, the regional infestation frequency of the European Corn Borer, the target pest of Bt-Maize, is the major determinant of adoption. Although Bt maize is a scale-neutral technology for controlling damages caused by the Corn Borer, additional fixed costs due to regulation make the technology scale dependent. Copyright (c) 2010 International Association of Agricultural Economists.

The Costs of Coexistence Measures for Genetically Modified Maize in Germany

“…Prior to these regulations a 20‐m pollen barrier was recommended as a best practice measure at farm level (Weber et al ., ; Consmüller et al ., ).…”

“…Case studies by Consmüller et al . () and Venus et al . () show that farmers perceive many coexistence measures as acceptable.…”

“…Although coexistence measures are meant to guarantee freedom of choice between GM and non‐GM crop cultivation, several papers have shown that minimum distance requirements discriminate against small farms (e.g. Devos et al ., ; Beckmann et al ., ; Consmüller et al ., ). This result may explain why research findings show a positive impact of farm size on the GM adoption probability (e.g.…”

“…This profitability depends on several agronomic and economic factors such as the European Corn Borer infestation rate, farm structure, pest control management or maize acreage per farm (e.g. Breustedt et al ., ; Consmüller et al ., ). Areal et al .…”

“…Previous literature analysing the cost of coexistence measures relies on small case studies with either direct assessments based on accounting principles (e.g. Messean et al ., ; Consmüller et al ., ; Skevas et al ., ; Venus et al ., ) or on simulations (e.g. Messean et al ., ).…”