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Rejecting New Technology: The Case of Genetically Modified Wheat

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Author Info

  • Derek Berwald
  • Colin A. Carter
  • Guillaume P. Gru�re

Abstract

Canada has stringent regulations covering the release of new wheat varieties, but the United States has virtually no regulations in this area. Monsanto Co. developed genetically modified (GM) spring wheat for North America, and made a commitment to the U.S. industry to release this new technology simultaneously in both Canada and the United States, or not at all. The Canadian regulatory bias against new varieties acted as a veto against GM wheat and caused Monsanto to shelve the technology in both countries in 2004. Substantial economic rents were foregone in North America due to the rejection of this new technology. Copyright 2006, Oxford University Press.

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File URL: http://hdl.handle.net/10.1111/j.1467-8276.2006.00869.x
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Bibliographic Info

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

Volume (Year): 88 (2006)
Issue (Month): 2 ()
Pages: 432-447

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Handle: RePEc:oup:ajagec:v:88:y:2006:i:2:p:432-447

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Cited by:
  1. Gruere, Guillaume P. & Sengupta, Debdatta, 2009. "GM-free private standards and their effects on biosafety decision-making in developing countries," 2009 Conference, August 16-22, 2009, Beijing, China 51334, International Association of Agricultural Economists.
  2. Zhao, Li & Gu, Haiying & Yue, Chengyan & Ahlstrom, David, 2013. "Consumer welfare and GM food labeling: A simulation using an adjusted Kumaraswamy distribution," Food Policy, Elsevier, vol. 42(C), pages 58-70.
  3. Gruere, Guillaume P. & Mevel, Simon & Bouet, Antoine, 2007. "Genetically Modified Rice, International Trade, and First-Mover Advantage: The Case of India and China," China's Agricultural Trade: Issues and Prospects Symposium, July 2007, Beijing, China 55032, International Agricultural Trade Research Consortium.
  4. 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.
  5. Tiffany Shih & Brian Wright, 2011. "Agricultural Innovation," NBER Chapters, in: Accelerating Energy Innovation: Insights from Multiple Sectors, pages 49-85 National Bureau of Economic Research, Inc.
  6. Ambec, Stefan & Langinier, Corinne & Marcoul, Philippe, 2011. "Spatial Efficiency of Genetically Modified and Organic Crops," LERNA Working Papers 11.18.352, LERNA, University of Toulouse.
  7. 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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