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The Economic Impacts of Biotechnology-Based Technological Innovations

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  • Greg Traxler

Abstract

Global adoption of transgenic crops reached 67.7 million hectares in 2003 from 2.8 million in 1996. Delivery has occurred almost entirely through the private sector and adoption has been rapid in areas where the crops addressed serious production constraints and where farmers had access to the new technologies. Three countries (USA, Argentina and Canada), three crops (soybean, cotton and maize) and two traits (insect resistance and herbicide tolerance) account for the vast majority of global transgenic area. While some farmers in some developing countries are benefiting, most do not have access to transgenic crops and traits that address their needs. This paper surveys the level and distribution of the economic impacts of transgenic cotton and soybeans to date and reviews the impacts of these crops on chemical pesticide and herbicide use. It concludes with some considerations of ways to address the development and delivery of technological innovations to small farmers in developing countries.

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Bibliographic Info

Paper provided by Agricultural and Development Economics Division of the Food and Agriculture Organization of the United Nations (FAO - ESA) in its series Working Papers with number 04-08.

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Length: 27 pages
Date of creation: 2004
Date of revision:
Handle: RePEc:fao:wpaper:0408

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Postal: Agricultural Sector in Economic Development Service FAO Viale delle Terme di Caracalla 00153 Rome Italy
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Related research

Keywords: Agricultural development; Agricultural research; Biotechnology; Cotton; Innovation adoption; Maize; Plant biotechnology; Technological changes;

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References

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  1. Matin Qaim & Greg Traxler, 2005. "Roundup Ready soybeans in Argentina: farm level and aggregate welfare effects," Agricultural Economics, International Association of Agricultural Economists, vol. 32(1), pages 73-86, 01.
  2. 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.
  3. Bryan J. Hubbell & Michele C. Marra & Gerald A. Carlson, 2000. "Estimating the Demand for a New Technology: Bt Cotton and Insecticide Policies," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(1), pages 118-132.
  4. 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.
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Cited by:
  1. Carl E. Pray & Anwar Naseem, 2003. "Biotechnology R&D: Policy options to ensure access and benefits for the poor," Working Papers 03-08, Agricultural and Development Economics Division of the Food and Agriculture Organization of the United Nations (FAO - ESA).

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