Complementary Technologies: Herbicide Tolerant Cotton and Conservative Tillage

When considered together, conservation tillage and herbicide-tolerant (HT) cotton seem to increase potential environmental benefits while decreasing certain costs to producers. This study tests the hypotheses that the diffusion of conservation tillage positively influences the diffusion of HT cotton and vice versa.

To test the hypotheses, state-level data HT cotton diffusion and conservation tillage diffusion were estimated using both ordinary least squares, two-stage least squares and simultaneous equation estimation techniques. To determine the quantitative effects of one technology’s diffusion on the other, elasticities of the diffusion of HT cotton with respect to conservation tillage and vice versa were calculated.

Based, on results from a three-stage least squares model, the null hypothesis that diffusion of each technology is independent of diffusion of the other can be rejected. Adoption of one technology appears to have a significant, positive effect on the adoption of the other technology. The calculated mean elasticities indicate that a one-percent increase in the diffusion of HT cotton increases conservation tillage diffusion by 0.48
percent. Similarly, a one-percent increase in the adoption of conservation tillage increases adoption of HT cotton by 0.16 percent.

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