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Ex-Ante Economic Impact Analysis of Novel Traits in Canola


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  • Singla, Rohit
  • Naseem, Anwar


This study evaluates the potential economic impacts of ten novel traits in canola by employing a stochastic economic surplus model. Nitrogen use efficiency, water use efficiency, flea beetle resistance, cold/freeze tolerance and drought tolerance traits were found to have the largest economic impacts. Major beneficiaries of the surplus benefits are consumers, and Canadian producers and innovators. The magnitudes of economic impacts varied substantially across the three major canola growing provinces in Canada. Net benefits were found sensitive to supply elasticity and time spent in R&D and regulatory approval. The benefits, however, were not very sensitive to alternative probability distribution assumption for adoption rate, and correlation of adoption rate with expected yield change.

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Paper provided by International Association of Agricultural Economists in its series 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil with number 126773.

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Date of creation: 2012
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Handle: RePEc:ags:iaae12:126773

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Keywords: trait evaluation; canola; surplus analysis; agricultural genomics; molecular-assisted breeding; Crop Production/Industries; Research Methods/ Statistical Methods; Q11; Q16; Q18;

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  7. Vida-Lina Esperanza B. Alpuerto & George W. Norton & Jeffrey Alwang & Abdelbagi M. Ismail, 2009. "Economic Impact Analysis of Marker-Assisted Breeding for Tolerance to Salinity and Phosphorous Deficiency in Rice," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 31(4), pages 779-792, December.
  8. José Benjamin Falck-Zepeda & Greg Traxler & Robert G. Nelson, 2000. "Surplus Distribution from the Introduction of a Biotechnology Innovation," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(2), pages 360-369.
  9. Zhao, Xueyan & Griffiths, William E. & Griffith, Garry R. & Mullen, John D., 2000. "Probability distributions for economic surplus changes: the case of technical change in the Australian wool industry," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 44(1), March.
  10. Rudi, Nderim & Norton, George W. & Alwang, Jeffrey Roger & Asumugha, Godwin N., 2010. "Economic impact analysis of marker-assisted breeding for resistance to pests and post harvest deterioration in cassava," Journal of Cooperatives, NCERA-210, vol. 4(2), June.
  11. Alpuerto, Vida & Norton, George W. & Alwang, Jeffrey Roger, 2008. "Economic Impact Analysis of Marker-Assisted Breeding in Rice," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6421, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
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