Improving factor efficiency under climate change through adaptive behavior: analysis of genetically modified insect-resistant cotton

ABSTRACT: Genetically modified insect-resistant cotton has been recognized as a potential technological means of adapting to climate change, but much remains unknown about how it affects factor efficiency. Using panel data for China from 1993 to 2020, this study explored the impact of genetically modified insect-resistant cotton on the factor efficiency of cotton production under climate change. We found that the adoption of genetically modified insect-resistant cotton significantly increases the output elasticity of pesticides while diminishing that of fertilizer, but has no effect on labor. This is mainly because it reduces the input of pesticides, which is otherwise expected to increase as a result of pest outbreaks caused by climate change. In contrast, it increases fertilizer input and thus reduces the output elasticity of fertilizer. Additionally, the effects on pesticide and fertilizer elasticity were weaker in the Yangtze River basin and northwest China, but stronger in the Yellow River basin. These findings provide a better understanding of how agricultural production factor efficiency responds to the adoption of adaptive behaviors under climate change. They can also serve as a reference to assist farmers in evaluating the effectiveness of adaptive behaviors and optimizing resource allocation for climate change adaptation.