Environmental and economic impacts of better cotton: a panel data analysis

Better cotton is introduced with the aim of a reduction in the use of environmentally detrimental farm inputs in order to attain sustainable cotton production. The present study is designed to assess the environmental and economic effects of better cotton in Pakistan using panel data comprising of two cropping seasons, 2015 and 2016. Panel methods were used in the present study. Findings show that better cotton increases the gross margin by 37% and yield by 9%, whereas it results in decreasing seed rate by 6%, fertilizers by 7%, pesticides by 7%, and irrigation by 14%. Since better cotton involves more labor use due to higher yield, labor increases by 3%. The study concludes that better cotton is more economically and environmentally sustainable than conventional cotton. The study suggests that public private partnership will be a good strategy to diffuse better cotton technologies among the farming communities.