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Biotech--Who Wins? Economic Benefits and Costs of Biotechnology Innovations in Agriculture

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  • Moschini, GianCarlo

Abstract

The conceptual model necessary for an assessment of biotechnology's economic benefits and costs is outlined, emphasizing the need to account for the proprietary nature of biotechnology innovations. The model is illustrated with an application to Roundup Ready soybeans. The estimated value of this innovation is sizeable, with consumers and innovators claiming the largest shares of net benefits. Also, disparities in intellectual property rights protection across countries affect the distribution of benefits. Consumer resistance toward GMOs and the issue of labelling and market segregation complicate the economic evaluation of biotechnology innovations; a number of related regulation and public policy issues are discussed. Emerging output-trait GMOs are potentially less controversial than some earlier GMOs and may bring more benefits to all participants in the agri-food sector, but this outcome depends crucially on the development of an effective, credible, and internationally harmonized regulatory system.

Suggested Citation

  • Moschini, GianCarlo, 2001. "Biotech--Who Wins? Economic Benefits and Costs of Biotechnology Innovations in Agriculture," Estey Centre Journal of International Law and Trade Policy, Estey Centre for Law and Economics in International Trade, vol. 2(1), pages 1-25.
    • Handle: RePEc:ags:ecjilt:23862
    DOI: 10.22004/ag.econ.23862
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    1. Giancarlo Moschini & Harvey Lapan, 1997. "Intellectual Property Rights and the Welfare Effects of Agricultural R&D," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(4), pages 1229-1242.
    2. Giancarlo Moschini & Harvey Lapan & Andrei Sobolevsky, 2000. "Roundup ready® soybeans and welfare effects in the soybean complex," Agribusiness, John Wiley & Sons, Ltd., vol. 16(1), pages 33-55.
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    8. Wesley M. Cohen & Richard R. Nelson & John P. Walsh, 2000. "Protecting Their Intellectual Assets: Appropriability Conditions and Why U.S. Manufacturing Firms Patent (or Not)," NBER Working Papers 7552, National Bureau of Economic Research, Inc.
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    13. Jose B. Falck-Zepeda & Greg Traxler & Robert G. Nelson, 2000. "Rent creation and distribution from biotechnology innovations: The case of bt cotton and Herbicide-Tolerant soybeans in 1997," Agribusiness, John Wiley & Sons, Ltd., vol. 16(1), pages 21-32.
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    Cited by:

    1. Richard Carew & Stephen Devadoss, 2003. "Quantifying the Contribution of Plant Breeders’Rights and Transgenic Varieties to Canola Yields: Evidence from Manitoba," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 51(3), pages 371-395, November.
    2. Harvey E. Lapan & Giancarlo Moschini, 2004. "Innovation and Trade with Endogenous Market Failure: The Case of Genetically Modified Products," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(3), pages 634-648.
    3. Mario F. Teisl & Julie A. Caswell, 2003. "Information Policy and Genetically Modified Food: Weighting the Benefits and Costs," QA - Rivista dell'Associazione Rossi-Doria, Associazione Rossi Doria, issue 4, March.
    4. Busdieker-Jesse, Nichole L. & Nogueira, Lia & Onal, Hayri & Bullock, David S., 2016. "The Economic Impact of New Technology Adoption on the U.S. Apple Industry," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 41(3), pages 1-21, September.
    5. Taing, William & Ahmadi-Esfahani, Fredoun Z., 2009. "GM technology and the Australian canola," 2009 Conference (53rd), February 11-13, 2009, Cairns, Australia 48191, Australian Agricultural and Resource Economics Society.
    6. Bruno Larue & Gale E. West & Carole Gendron & Rémy Lambert, 2004. "Consumer response to functional foods produced by conventional, organic, or genetic manipulation," Agribusiness, John Wiley & Sons, Ltd., vol. 20(2), pages 155-166.
    7. Antonio Seccia & Antonio Stasi & Luigi Roselli, 2006. "Atteggiamento dei consumatori nei confronti dell'evoluzione del sistema agro-alimentare: l'introduzione di alimenti geneticamente modificati," Economia agro-alimentare, FrancoAngeli Editore, vol. 10(1).
    8. Johnson, D. Demcey & Lin, William & Vocke, Gary, 2005. "Economic and welfare impacts of commercializing a herbicide-tolerant, biotech wheat," Food Policy, Elsevier, vol. 30(2), pages 162-184, April.

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