IDEAS home Printed from https://ideas.repec.org/p/ags/kucawp/31828.html
   My bibliography  Save this paper

Uncertainties Of Estimating The Welfare Effects Of Agricultural Biotechnology In The European Union

Author

Listed:
  • Demont, Matty
  • Tollens, Eric

Abstract

In literature, impact estimates of agricultural biotechnology vary strongly according to the region, the crop, the year, the scale, and the methodology of the study. Therefore, this paper provides a methodological background for analysing, interpreting, and comparing these estimates. All possible uncertainties entailed in the estimation procedure are reviewed as well as a methodology to incorporate them into a stochastic simulation model. This procedure can be used to assess the welfare effects of agricultural biotechnology in the European Union.

Suggested Citation

  • Demont, Matty & Tollens, Eric, 2001. "Uncertainties Of Estimating The Welfare Effects Of Agricultural Biotechnology In The European Union," Working Papers 31828, Katholieke Universiteit Leuven, Centre for Agricultural and Food Economics.
    • Handle: RePEc:ags:kucawp:31828
    DOI: 10.22004/ag.econ.31828
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/31828/files/wp010058.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.31828?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Fernandez-Cornejo, Jorge & Daberkow, Stan G. & McBride, William D., 2001. "Decomposing The Size Effect On The Adoption Of Innovations: Agrobiotechnology And Precision Farming," 2001 Annual meeting, August 5-8, Chicago, IL 20527, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    2. Bruce L. Gardner, 1975. "The Farm-Retail Price Spread in a Competitive Food Industry," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 57(3), pages 399-409.
    3. Giancarlo Moschini & Harvey Lapan, 1997. "Intellectual Property Rights and the Welfare Effects of Agricultural R&D," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(4), pages 1229-1242.
    4. Giancarlo Moschini & Harvey Lapan & Andrei Sobolevsky, 2000. "Roundup ready® soybeans and welfare effects in the soybean complex," Agribusiness, John Wiley & Sons, Ltd., vol. 16(1), pages 33-55.
    5. Harvey E. Lapan & Giancarlo Moschini, 2000. "Incomplete Adoption of a Superior Innovation," Economica, London School of Economics and Political Science, vol. 67(268), pages 525-542, November.
    6. Xueyan Zhao & John D. Mullen & Gary R. Griffith, 1997. "Functional Forms, Exogenous Shifts, and Economic Surplus Changes," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(4), pages 1243-1251.
    7. Demont, Matty & Jouve, Philippe & Stessens, Johan & Tollens, Eric, 1999. "Evolution Des Systemes Agraires Dans Le Nord De La Cote D'Ivoire: Les Debats, Boserup Versus Malthus, Et Competition Versus Complementarite, Revisites," Working Papers 31833, Katholieke Universiteit Leuven, Centre for Agricultural and Food Economics.
    8. Roger N. Rose, 1980. "Supply Shifts and Research Benefits: Comment," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 62(4), pages 834-837.
    9. Demont, Matty & Tollens, Eric, 1999. "The Economics Of Agricultural Biotechnology: Historical And Analytical Framework," Working Papers 31845, Katholieke Universiteit Leuven, Centre for Agricultural and Food Economics.
    10. Pannell, David J., 1997. "Sensitivity analysis of normative economic models: theoretical framework and practical strategies," Agricultural Economics, Blackwell, vol. 16(2), pages 139-152, May.
    11. Hurley, Terrance M. & Mitchell, Paul D. & Rice, Marlin E., 2001. "What Is The Value Of Bt Corn?," 2001 Annual meeting, August 5-8, Chicago, IL 20476, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    12. Geoff W. Edwards & Jan P. Voon, 1997. "The Calculation of Research Benefits with Linear and Nonlinear Specifications of Demand and Supply: Reply," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(4), pages 1368-1371.
    13. William Griffiths & Xueyan Zhao, 2000. "A Unified Approach to Sensitivity Analysis in Equilibrium Displacement Models: Comment," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(1), pages 236-240.
    14. Demont, Matty & Jouve, Philippe & Stessens, Johan & Tollens, Eric, 2000. "The Evolution Of Farming Systems In Northern Cote D'Ivoire: Boserup Versus Malthus And Competition Versus Complementarity," 2000 Annual meeting, July 30-August 2, Tampa, FL 21865, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    15. Elamin H. Elbasha, 1997. "The Calculation of Research Benefits with Linear and Nonlinear Specifications of Demand and Supply: Comment," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(4), pages 1363-1367.
    16. J.M. Labatte & Brigitte Got, 1993. "Modeling within-plant distribution of european corn borer (Lepidoptera : Pyralidae) larvae on corn for pretasseling infestation," Post-Print hal-02715854, HAL.
    17. 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.
    18. Diebold, Francis X. & Lamb, Russell L., 1997. "Why are estimates of agricultural supply response so variable?," Journal of Econometrics, Elsevier, vol. 76(1-2), pages 357-373.
    19. Allen, Douglas W & Lueck, Dean, 1998. "The Nature of the Farm," Journal of Law and Economics, University of Chicago Press, vol. 41(2), pages 343-386, October.
    20. William S. Wise & Elisabeth Fell, 1980. "Supply Shifts and the Size of Research Benefits: Comment," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 62(4), pages 838-840.
    21. Mingxia Zhang, 1997. "The Effects of Imperfect Competition on the Size and Distribution of Research Benefits," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(4), pages 1252-1265.
    22. George C. Davis & M. Cristina Espinoza, 2000. "A Unified Approach to Sensitivity Analysis in Equilibrium Displacement Models: Reply," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(1), pages 241-243.
    23. Lapan, Harvey E & Moschini, Giancarlo, 2000. "Incomplete Adoption of a Superior Innovation," Economica, London School of Economics and Political Science, vol. 67(268), pages 525-542, November.
    24. J. K. Horowitz & E. Lichtenberg, 1994. "Risk‐Reducing And Risk‐Increasing Effects Of Pesticides," Journal of Agricultural Economics, Wiley Blackwell, vol. 45(1), pages 82-89, January.
    25. Lin, William W. & Price, Gregory K. & Fernandez-Cornejo, Jorge, 2001. "Estimating Farm-Level Effects Of Adopting Biotechnology," 2001 Annual meeting, August 5-8, Chicago, IL 20484, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    26. Alexander, Corinne E. & Goodhue, Rachael E., 1999. "Production Systems Competition And The Pricing Of Innovations: An Application To Biotechnology And Seed Corn," 1999 Annual meeting, August 8-11, Nashville, TN 21646, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    27. Feder, Gershon & Just, Richard E & Zilberman, David, 1985. "Adoption of Agricultural Innovations in Developing Countries: A Survey," Economic Development and Cultural Change, University of Chicago Press, vol. 33(2), pages 255-298, January.
    28. Demont, Matty & Tollens, Eric, 2000. "Biologische, Biotechnologische En Gangbare Landbouw: Een Vergelijkende Economische Studie," Working Papers 31839, Katholieke Universiteit Leuven, Centre for Agricultural and Food Economics.
    29. George C. Davis & Maria Cristina Espinoza, 1998. "A Unified Approach to Sensitivity Analysis in Equilibrium Displacement Models," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(4), pages 868-879.
    30. Abadi Ghadim, Amir K. & Pannell, David J., 1999. "A conceptual framework of adoption of an agricultural innovation," Agricultural Economics, Blackwell, vol. 21(2), pages 145-154, October.
    31. Poonyth, Daneswar & Westhoff, Patrick & Womack, Abner & Adams, Gary, 2000. "Impacts of WTO restrictions on subsidized EU sugar exports," Agricultural Economics, Blackwell, vol. 22(3), pages 233-245, April.
    32. Hicks, J. R., 1975. "Value and Capital: An Inquiry into some Fundamental Principles of Economic Theory," OUP Catalogue, Oxford University Press, edition 2, number 9780198282693.
    33. Fernandez-Cornejo, Jorge & McBride, William D., 2000. "Genetically Engineered Crops For Pest Management In U.S. Agriculture," Agricultural Economic Reports 33931, United States Department of Agriculture, Economic Research Service.
    34. Davis, George C., 2001. "Confirmation And Falsification Of Equilibrium Displacement Models," 2001 Annual meeting, August 5-8, Chicago, IL 20525, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    35. Pascal Lavergne & Vincent Réquillart & Michel Simioni, 2001. "Welfare Losses Due to Market Power: Hicksian versus Marshallian Measurement," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(1), pages 157-165.
    36. J.M. Labatte & S. Meusnier & A. Migeon & Josette Chaufaux & Yvonne Couteaudier & Guy Riba & Brigitte Got, 1996. "Field evaluation of and modeling the impact of three control methods on the larval dynamics of Ostrinia nubilalis ( Lepidoptera :Pyralidae )," Post-Print hal-02691714, HAL.
    37. Jan P. Voon & Geoff W. Edwards, 1991. "The Calculation of Research Benefits with Linear and Nonlinear Specifications of Demand and Supply Functions," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 73(2), pages 415-420.
    38. R. K. Lindner & F. G. Jarrett, 1978. "Supply Shifts and the Size of Research Benefits," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 60(1), pages 48-58.
    39. Price, Gregory K. & Lin, William W. & Falck-Zepeda, Jose Benjamin, 2001. "The Distribution Of Benefits Resulting From Biotechnology Adoption," 2001 Annual meeting, August 5-8, Chicago, IL 20681, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    40. Kim, Kwansoo & Chavas, Jean-Paul, 2003. "Technological change and risk management: an application to the economics of corn production," Agricultural Economics, Blackwell, vol. 29(2), pages 125-142, October.
    41. Demont, Matty & Tollens, Eric, 2001. "Reshaping The Conventional Welfare Economics Framework For Estimating The Economic Impact Of Agricultural Biotechnology In The European Union," Working Papers 31835, Katholieke Universiteit Leuven, Centre for Agricultural and Food Economics.
    42. Alain Carpentier & Robert D. Weaver, 1997. "Damage Control Productivity: Why Econometrics Matters," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(1), pages 47-61.
    43. Quirino Paris & Richard E. Howitt, 1998. "An Analysis of Ill-Posed Production Problems Using Maximum Entropy," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(1), pages 124-138.
    44. Nadolnyak, Denis A. & Sheldon, Ian M., 2001. "Simulating The Effects Of Adoption Of Genetically Modified Soybeans In The U.S," 2001 Annual meeting, August 5-8, Chicago, IL 20734, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    45. Chanjin Chung & Brian L. Buhr, 1997. "Market level economic impacts of modified soybeans," Agribusiness, John Wiley & Sons, Ltd., vol. 13(5), pages 469-482.
    46. William D. McBride & Nora Books, 2000. "Survey evidence on producer use and costs of genetically modified seed," Agribusiness, John Wiley & Sons, Ltd., vol. 16(1), pages 6-20.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Tollens, Eric, 2002. "Market Information Systems In Liberalized African Export Commodity Markets: The Case Of Cocoa And Coffee In Cote D'Ivoire, Nigeria And Cameroon," Working Papers 31860, Katholieke Universiteit Leuven, Centre for Agricultural and Food Economics.
    2. Demont, Matty & Tollens, Eric, 2001. "Reshaping The Conventional Welfare Economics Framework For Estimating The Economic Impact Of Agricultural Biotechnology In The European Union," Working Papers 31835, Katholieke Universiteit Leuven, Centre for Agricultural and Food Economics.
    3. Demont, Matty & Tollens, Eric, 2002. "The Euwab-Project: Discussion," Working Papers 31858, Katholieke Universiteit Leuven, Centre for Agricultural and Food Economics.
    4. Tollens, Eric, 2002. "Food Security In Kinshasa, Coping With Adversity," Working Papers 31848, Katholieke Universiteit Leuven, Centre for Agricultural and Food Economics.
    5. Demont, Matty & Tollens, Eric, 2003. "Impact Of Biotechnology In Europe: The First Four Years Of Bt Maize Adoption In Spain," Working Papers 31851, Katholieke Universiteit Leuven, Centre for Agricultural and Food Economics.
    6. Demont, Matty & Tollens, Eric, 2001. "Welfare Effects Of Transgenic Sugarbeets In The European Union: A Theoretical Ex-Ante Framework," Working Papers 31852, Katholieke Universiteit Leuven, Centre for Agricultural and Food Economics.
    7. Soregaroli, Claudio & Wesseler, Justus, 2005. "Minimum Distance Requirements and Liability: Implications for Co-Existence," MPRA Paper 33230, University Library of Munich, Germany.
    8. Tollens, Eric, 2003. "Current Situation Of Food Security In The D.R. Congo: Diagnostic And Perspectives," Working Papers 31853, Katholieke Universiteit Leuven, Centre for Agricultural and Food Economics.
    9. Tollens, Eric & Demont, Matty & Swennen, Rony, 2003. "Agrobiotechnology In Developing Countries: North-South Partnerships Are A Key," Working Papers 31837, Katholieke Universiteit Leuven, Centre for Agricultural and Food Economics.
    10. Demont, Matty & Jouve, Philippe & Stessens, Johan & Tollens, Eric, 2000. "The Evolution Of Farming Systems In Northern Cote D'Ivoire: Boserup Versus Malthus And Competition Versus Complementarity," Working Papers 31846, Katholieke Universiteit Leuven, Centre for Agricultural and Food Economics.
    11. Tollens, Eric, 2003. "Poverty And Livelihood Entitlement, How It Relates To Agriculture," Working Papers 31856, Katholieke Universiteit Leuven, Centre for Agricultural and Food Economics.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Demont, Matty & Tollens, Eric, 2001. "Welfare Effects Of Transgenic Sugarbeets In The European Union: A Theoretical Ex-Ante Framework," Working Papers 31852, Katholieke Universiteit Leuven, Centre for Agricultural and Food Economics.
    2. Demont, Matty & Tollens, Eric, 2001. "Ex-Ante Evaluation Of The Economic Impact Of Agricultural Biotechnology In The European Union: The Case Of Transgenic Sugarbeets," 2001 Annual meeting, August 5-8, Chicago, IL 20631, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    3. Demont, Matty & Tollens, Eric, 2001. "Reshaping The Conventional Welfare Economics Framework For Estimating The Economic Impact Of Agricultural Biotechnology In The European Union," Working Papers 31835, Katholieke Universiteit Leuven, Centre for Agricultural and Food Economics.
    4. Demont, Matty & Tollens, Eric, "undated". "When Modern Agricultural (BIO)Technologies Meet Obsolete Trade PoliciesL The Case of the European Union's Sugar Industry," 2002 Conference (46th), February 13-15, 2002, Canberra, Australia 125079, Australian Agricultural and Resource Economics Society.
    5. Dillen, Koen & Demont, Matty & Tollens, Eric, 2008. "Modelling heterogeneity to estimate the ex ante value of biotechnology innovations," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 43945, European Association of Agricultural Economists.
    6. Demont, Matty & Tollens, Eric, 2001. "Economic Impact Of Agricultural Biotechnology In The Eu: The Euwab Project," Working Papers 31857, Katholieke Universiteit Leuven, Centre for Agricultural and Food Economics.
    7. Tollens, Eric & Demont, Matty & Swennen, Rony, 2003. "Agrobiotechnology In Developing Countries: North-South Partnerships Are A Key," Working Papers 31837, Katholieke Universiteit Leuven, Centre for Agricultural and Food Economics.
    8. Harvey E. Lapan & Giancarlo Moschini, 2004. "Innovation and Trade with Endogenous Market Failure: The Case of Genetically Modified Products," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(3), pages 634-648.
    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), pages 1-24.
    10. Demont, Matty & Tollens, Eric, 2002. "Impact Of Agricultural Biotechnology In The European Union'S Sugar Industry," Working Papers 31854, Katholieke Universiteit Leuven, Centre for Agricultural and Food Economics.
    11. Koen Dillen & Matty Demont & Eric Tollens, 2008. "European Sugar Policy Reform and Agricultural Innovation," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 56(4), pages 533-553, December.
    12. Eric Tollens, 2004. "Biodiversity versus transgenic sugar beet: the one euro question," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 31(1), pages 1-18, March.
    13. Tollens, Eric, 2003. "Poverty And Livelihood Entitlement, How It Relates To Agriculture," Working Papers 31856, Katholieke Universiteit Leuven, Centre for Agricultural and Food Economics.
    14. Falck-Zepeda, Jose & Horna, Daniela & Smale, Melinda, 2007. "The economic impact and the distribution of benefits and risk from the adoption of insect resistant (Bt) cotton in West Africa," IFPRI discussion papers 718, International Food Policy Research Institute (IFPRI).
    15. Tollens, Eric, 2003. "Current Situation Of Food Security In The D.R. Congo: Diagnostic And Perspectives," Working Papers 31853, Katholieke Universiteit Leuven, Centre for Agricultural and Food Economics.
    16. Williams, Gary W. & Shumway, C. Richard & Love, H. Alan, 2002. "Returns to Soybean Producers from Investments in Promotion and Research," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 31(1), pages 1-15, April.
    17. Takeshima, Hiroyuki, 2009. "Sensitivity of welfare effects estimated by equilibrium displacement model: a biological productivity growth for semi-subsistence crop in Sub-Sahara African market with high transactions costs," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 49287, Agricultural and Applied Economics Association.
    18. Matty Demont & Marie Cerovska & Wim Daems & Koen Dillen & József Fogarasi & Erik Mathijs & František Muška & Josef Soukup & Eric Tollens, 2008. "Ex Ante Impact Assessment under Imperfect Information: Biotechnology in New Member States of the EU," Journal of Agricultural Economics, Wiley Blackwell, vol. 59(3), pages 463-486, September.
    19. Demont, Matty & Tollens, Eric, 2003. "Impact Of Biotechnology In Europe: The First Four Years Of Bt Maize Adoption In Spain," Working Papers 31851, Katholieke Universiteit Leuven, Centre for Agricultural and Food Economics.
    20. Traxler, Greg, 2004. "The Economic Impacts of Biotechnology-Based Technological Innovations," ESA Working Papers 23806, Food and Agriculture Organization of the United Nations, Agricultural Development Economics Division (ESA).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:kucawp:31828. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/alkulbe.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.