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Producer Surplus Distributions in GM Crops: The Ignored Impacts of Roundup Ready Wheat

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Author Info

  • Wilson, William W.
  • Huso, Scott R.

Abstract

Release of a genetically modified (GM) crop variety would lower prices of competing pesticides used on conventional varieties. This causes an increase in surplus for those farmers who adopt the GM variety, as well as for those who plant the conventional variety. A Cournot model was developed to determine the equilibrium quantities of conventional pesticides. A market with conventional wheat was compared to a market with both conventional and GM wheat varieties to identify price decreases of the conventional pesticide as a result of the GM trait introduction.

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Bibliographic Info

Article provided by Western Agricultural Economics Association in its journal Journal of Agricultural and Resource Economics.

Volume (Year): 31 (2006)
Issue (Month): 02 (August)
Pages:

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Handle: RePEc:ags:jlaare:8608

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Web page: http://waeaonline.org/
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Related research

Keywords: genetically modified crops; Roundup Ready; wheat; Crop Production/Industries;

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Cited by:
  1. Wilson, William W. & Huso, Scott R., 2008. "Trait Stacking, Licensing, and Seed Firm Acquisitions on Genetically Modified Grains: A Strategic Analysis," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 33(3), December.

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