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Dynamic Supply Response and Welfare Effects of Technological Change on Perennial Crops: The Case of Cocoa in Malaysia

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  • Nikolaus Gotsch
  • Kees Burger

Abstract

Modern biotechnology will generate crops with higher yields and enhanced resistance to pests and diseases. In the case of perennial crops, the age composition of the present stand, the farmers' willingness to invest, and the yield profiles of old and new trees determine the speed of adoption of the new technology and the timing of the effects on supply and demand conditions. We adapt conventional welfare measures to account for these factors in the assessment of research induced supply shifts. The application to cocoa in Malaysia shows that consumers and adopting producers gain and non-adopters lose. Overall, 72% of the welfare gains go to the consumers. Copyright 2001, Oxford University Press.

Suggested Citation

  • Nikolaus Gotsch & Kees Burger, 2001. "Dynamic Supply Response and Welfare Effects of Technological Change on Perennial Crops: The Case of Cocoa in Malaysia," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(2), pages 272-285.
    • Handle: RePEc:oup:ajagec:v:83:y:2001:i:2:p:272-285
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    File URL: http://hdl.handle.net/10.1111/0002-9092.00155
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    Cited by:

    1. Hosseini, Seyed Safdar & Shahnavazi, Ali, 2013. "An Economic Evaluation of Iranian Horticultural Research and Extension Policy: The Case Study of Almond Late Flowering Cultivars," International Journal of Agricultural Management and Development (IJAMAD), Iranian Association of Agricultural Economics, vol. 3(3), pages 1-9, September.
    2. Bullock, David S. & Dadakas, Dimitrios & Katranidis, Stelios D., 2009. "Measuring the Effects of Technology Change in Multiple Markets : Application to the Greek Cotton Yarn Industry," MPRA Paper 67204, University Library of Munich, Germany, revised 2012.

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