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Surplus Distribution from the Introduction of a Biotechnology Innovation

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Author Info
Falck-Zepeda, Jose Benjamin
Traxler, Greg
Nelson, Robert G

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Abstract

We examine the distribution of welfare from the introduction of Bt cotton in the United States in 1996. The welfare framework explicitly recognizes that research protected by intellectual property rights generates monopoly profits, and makes it possible to partition these rents among consumers, farmers, and the innovating input firms. We calculate a total increase in world surplus of ST0.3 million for 1996. Of this total, the largest share (59%) went to U.S. farmers. The gene developer, Monsanto, received the next largest share (21%), followed by U.S. consumers (9%), the rest of the world (6%), and the germplasm supplier, Delta and Pine Land Company (5%). Copyright 2000 by American Agricultural Economics Association

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Article provided by American Agricultural Economics Association in its journal American Journal of Agricultural Economics.

Volume (Year): 82 (2000)
Issue (Month): 2 (May)
Pages: 360-69
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Handle: RePEc:bla:ajagec:v:82:y:2000:i:2:p:360-69

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This page was last updated on 2009-10-25.


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