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Privatised provision of essential plant breeding infrastructure

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  • Bob Lindner

Abstract

As private plant breeding replaces public programs, the efficient provision and utilisation of key enabling technologies for crop breeding, which are largely knowledge based and provide the foundation for variety improvement, might be at risk. Typically, such inputs are non‐rival in use and are therefore termed essential plant breeding infrastructure (EPBI). Specific threats include the possibility of wasteful duplication in production, under‐production, under‐utilisation of produced EPBI because of price rationing, and anticompetitive outcomes in plant breeding and downstream markets. The likely level of under‐investment in hypothetical molecular‐marker technology by a profit‐maximising monopoly producer, charging uniform prices for access, is analysed using results from the published literature on excludable public goods.

Suggested Citation

  • Bob Lindner, 2004. "Privatised provision of essential plant breeding infrastructure," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 48(2), pages 301-321, June.
    • Handle: RePEc:bla:ajarec:v:48:y:2004:i:2:p:301-321
    DOI: 10.1111/j.1467-8489.2004.00241.x
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    References listed on IDEAS

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    1. Geoffrey Brennan & Cliff Walsh, 1985. "Private Markets in (Excludable) Public Goods: A Reexamination," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 100(3), pages 811-819.
    2. Thirtle, Colin G. & Srinivasan, Chittur S. & Heisey, Paul W., 2001. "Public Sector Plant Breeding In A Privatizing World," Agricultural Information Bulletins 33775, United States Department of Agriculture, Economic Research Service.
    3. Unknown, 1999. "Impact of Competition Policy Reforms on Rural and Regional Australia," Inquiry Reports 31892, Productivity Commission.
    4. Brennan, Geoffrey & Walsh, Cliff, 1981. "A Monopoly Model of Public Goods Provision: The Uniform Pricing Case," American Economic Review, American Economic Association, vol. 71(1), pages 196-206, March.
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    1. Lindner, Robert K., 2004. "Economic Issues for Plant Breeding - Public Funding and Private Ownership," Australasian Agribusiness Review, University of Melbourne, Department of Agriculture and Food Systems, vol. 12.
    2. Reece, J. David & Haribabu, Ejnavarzala, 2007. "Genes to feed the world: The weakest link?," Food Policy, Elsevier, vol. 32(4), pages 459-479, August.
    3. Binenbaum, Eran & Pardey, Philip G., 2005. "Collective Action in Plant Breeding," 2005 Annual meeting, July 24-27, Providence, RI 19530, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    4. Brennan, John P. & Martin, Peter J., 2006. "Developing Cost Functions for a Wheat Breeding Program," 2006 Conference (50th), February 8-10, 2006, Sydney, Australia 174425, Australian Agricultural and Resource Economics Society.
    5. Kingwell, Ross S., 2005. "Institutional Change and Plant Variety Provisions in Australia," Australasian Agribusiness Review, University of Melbourne, Department of Agriculture and Food Systems, vol. 13.
    6. Wright, Brian D. & Pardey, Philip G. & Nottenburg, Carol & Koo, Bonwoo, 2007. "Agricultural Innovation: Investments and Incentives," Handbook of Agricultural Economics, in: Robert Evenson & Prabhu Pingali (ed.), Handbook of Agricultural Economics, edition 1, volume 3, chapter 48, pages 2533-2603, Elsevier.

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