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The Economic Impacts of Biotechnology-Based Technological Innovations

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Author Info
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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Publisher 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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Related research
Keywords: Agricultural development; Agricultural research; Biotechnology; Cotton; Innovation adoption; Maize; Plant biotechnology; Technological changes;

Find related papers by JEL classification:
O13 - Economic Development, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
Q16 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - R&D; Agricultural Technology; Agricultural Extension Services

References listed on IDEAS
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  1. Falck-Zepeda, Jose Benjamin & Traxler, Greg & Nelson, Robert G, 2000. " Surplus Distribution from the Introduction of a Biotechnology Innovation," American Journal of Agricultural Economics, American Agricultural Economics Association, vol. 82(2), pages 360-69, May. [Downloadable!] (restricted)
  2. Moschini, Giancarlo & Lapan, Harvey & Sobolevsky, Andrei, 2000. "Roundup Ready Soybeans and Welfare Effects in the Soybean Complex," Staff General Research Papers 1799, Iowa State University, Department of Economics.
  3. Marra, Michele C. & Pardey, Philip G. & Alston, Julian M., 2002. "The payoffs to agricultural biotechnology: an assessment of the evidence," EPTD discussion papers 87, International Food Policy Research Institute (IFPRI). [Downloadable!]
  4. Pray, Carl & Ma, Danmeng & Huang, Jikun & Qiao, Fangbin, 2001. "Impact of Bt Cotton in China," World Development, Elsevier, vol. 29(5), pages 813-825, May. [Downloadable!] (restricted)
  5. 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.
  6. Hubbell, Bryan J & Marra, Michele C & Carlson, Gerald A, 2000. " Estimating the Demand for a New Technology: Bt Cotton and Insecticide Policies," American Journal of Agricultural Economics, American Agricultural Economics Association, vol. 82(1), pages 118-32, February. [Downloadable!] (restricted)
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This page was last updated on 2009-12-12.


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