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GM technology and the Australian canola

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Author Info
Taing, William
Ahmadi-Esfahani, Fredoun Z.
Abstract

In this paper, we use a simulation model to measure the potential market and welfare effects of recently introduced genetically modified (GM) canola in Australia. The short-run results indicate that non-GM canola may emerge as a niche product commanding a premium. In the long run, GM technology appears to enhance aggregate welfare. However, when production cost savings are trivial and consumers become highly concerned about GM food products, aggregate welfare may decline. The policy implications of the analysis are explored.

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Publisher Info
Paper provided by Australian Agricultural and Resource Economics Society in its series 2009 Conference (53rd), February 11-13, 2009, Cairns, Australia with number 48191.

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Date of creation: 2009
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Handle: RePEc:ags:aare09:48191

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Related research
Keywords: canola market; genetically modified crops; segregation; welfare.;

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References listed on IDEAS
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  1. Sergio H. Lence & Dermot J. Hayes, 2005. "Genetically Modified Crops: Their Market and Welfare Impacts," American Journal of Agricultural Economics, American Agricultural Economics Association, vol. 87(4), pages 931-950, November. [Downloadable!] (restricted)
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  2. Huang, Jikun & Hu, Ruifa & van Meijl, Hans & van Tongeren, Frank, 2004. "Biotechnology boosts to crop productivity in China: trade and welfare implications," Journal of Development Economics, Elsevier, vol. 75(1), pages 27-54, October. [Downloadable!] (restricted)
  3. Sergio H. Lence & Dermot J. Hayes, 2008. "Welfare Impacts of Cross-Country Spillovers in Agricultural Research," American Journal of Agricultural Economics, American Agricultural Economics Association, vol. 90(1), pages 197-215, 02. [Downloadable!] (restricted)
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  4. Moschini, GianCarlo & Lapan, Harvey, 2002. "Intellectual Property Rights and the Welfare Effects of Agricultural R & D," Staff General Research Papers 5048, Iowa State University, Department of Economics.
  5. Derek Berwald & Colin A. Carter & Guillaume P. Gruère, 2006. "Rejecting New Technology: The Case of Genetically Modified Wheat," American Journal of Agricultural Economics, American Agricultural Economics Association, vol. 88(2), pages 432-447, 05. [Downloadable!] (restricted)
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This page was last updated on 2009-11-26.

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