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The Economics Of Agricultural Biotechnology: Historical And Analytical Framework

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  • Demont, Matty
  • Tollens, Eric

Abstract

In this working paper we attempt to establish a general analytical framework for the calculation of the micro- and macroeconomic benefits and costs of biotechnology applications in EU agriculture. Since these innovative applications are typically protected by intellectual property rights, standard welfare analyses will overestimate total benefits generated by these innovations. On the other hand, this doesn'’t mean that innovators are extracting all of the benefits. A recent ex-post welfare analysis on US Bt-cotton shows that farmers have captured the largest share of benefits (Falck-Zepeda, Traxler and Nelson, 1999). Due to the importance of intellectual property rights and the consolidation of the agricultural input industry, the framework presented by Moschini and Lapan (1997) seems to be the most adequate model as it takes into account these elements.

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Bibliographic Info

Paper provided by Katholieke Universiteit Leuven, Centre for Agricultural and Food Economics in its series Working Papers with number 31845.

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Date of creation: 1999
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Handle: RePEc:ags:kucawp:31845

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Web page: http://www.agr.kuleuven.ac.be/aee/clo/clohomee.htm
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Keywords: Research and Development/Tech Change/Emerging Technologies;

References

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  1. Lavoie, Brian F. & Sheldon, Ian M., 1999. "The Source Of Comparative Advantage In The Biotechnology Industry: A Real Options Approach," 1999 Annual meeting, August 8-11, Nashville, TN 21508, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  2. 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.
  3. McBride, William D. & Books, Nora, 2000. "Survey Evidence On Producer Use And Costs Of Genetically Modified Seed," Proceedings:Transitions in Agbiotech: Economics of Strategy and Policy, June 24-25, 1999, Washington, D.C. 26009, Regional Research Project NE-165 Private Strategies, Public Policies, and Food System Performance.
  4. Jose B. Falck-Zepeda & Greg Traxler & Robert G. Nelson, 2000. "Rent creation and distribution from biotechnology innovations: The case of bt cotton and Herbicide-Tolerant soybeans in 1997," Agribusiness, John Wiley & Sons, Ltd., vol. 16(1), pages 21-32.
  5. Kalaitzandonakes, Nicholas G. & Marks, Leonie A., 1999. "Public Opinion Of Agbiotech In The Us And Uk: A Content Analysis Approach," 1999 Annual meeting, August 8-11, Nashville, TN 21678, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  6. Binswanger, Hans P., 1973. "The Measurement Of Technical Change Biases With Many Factors Of Production," Staff Papers 14205, University of Minnesota, Department of Applied Economics.
  7. Stefanides, Zdenko & Tauer, Loren W., 1998. "The Empirical Impact Of Bovine Somatotropin On A Group Of New York Dairy Farms," Working Papers 7263, Cornell University, Department of Applied Economics and Management.
  8. Horbulyk, Theodore M., 2000. "Strategy And Incentives In The Compulsory Licensing Of Intellectual Property In Agriculture," Proceedings:Transitions in Agbiotech: Economics of Strategy and Policy, June 24-25, 1999, Washington, D.C. 26011, Regional Research Project NE-165 Private Strategies, Public Policies, and Food System Performance.
  9. Wesseler, Justus, 2000. "Temporal Uncertainty And Irreversibility: A Theoretical Framework For The Decision To Approve The Release Of Transgenic Crops," Proceedings:Transitions in Agbiotech: Economics of Strategy and Policy, June 24-25, 1999, Washington, D.C. 26010, Regional Research Project NE-165 Private Strategies, Public Policies, and Food System Performance.
  10. Hurley, Terrance M. & Secchi, Silvia & Hellmich, Richard L., 1999. "Managing The Risk Of European Corn Borer Resistance To Transgenic Corn: An Assessment Of Controversial Refuge Recommendations," 1999 Annual meeting, August 8-11, Nashville, TN 21606, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  11. W. Lesser & John Bernard & Kaafee Billah, 1999. "Methodologies for ex ante projections of adoption rates for agbiotech products: Lessons learned from rBST," Agribusiness, John Wiley & Sons, Ltd., vol. 15(2), pages 149-162.
  12. Lyson, Thomas A. & Tauer, Loren W. & Welsh, Rick, 1995. "Factors Related to the Adoption of rBST Among a Population of Farmers in Ontario County, New York," Staff Papers 121200, Cornell University, Department of Applied Economics and Management.
  13. Susan Bartholomew, 1997. "National Systems of Biotechnology Innovation: Complex Interdependence in the Global System," Journal of International Business Studies, Palgrave Macmillan, vol. 28(2), pages 241-266, June.
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Citations

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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. "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.
  3. Diez, Maria Del Carmen Fernandez, 2005. "Welfare Measures and Mandatory Regulation for Transgenic Food in the European Union: A Theoretical Framework for the Analysis," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24472, European Association of Agricultural Economists.
  4. 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.
  5. 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.

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