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Assessing and attributing the benefits from varietal improvement research: evidence from Embrapa, Brazil

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Author Info
Pardey, Philip G.
Alston, Julian M.
Chan-Kang, Connie
Magalhães, Eduardo C.
Vosti, Stephen A.

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Abstract

In general, reported rates of return to agricultural R&D are high, but questions have been raised about upward biases in the evidence. Among the reasons for this bias, insufficient attention to attribution aspects. Matching of research benefits and costs is a pervasive problem, the magnitude of which is illustrated here with new evidence for Brazil. Over the period 1981 to 2003, varietal improvements in upland rice, edible beans, and soybeans yielded benefits attributable to research of $14.8 billion in present value (1999 prices) terms; 6.1 percent of the corresponding value of crop output. If all of those benefits were attributed to Embrapa, a public research corporation accounting for more than half Brazil's agricultural R&D spending, the benefit-cost ratio would be 78:1. If a geometric attribution rule based on genetic histories is used in conjunction with quantitative evidence on the extent of research collaborations to account for the innovative effort of others, the ratio drops substantially to 16:1. The sources of these gains vary markedly among crops and over time, making it hard to generalize about the international and institutional origins of varietal innovations in Brazilian agriculture during the past several decades.

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Paper provided by International Food Policy Research Institute (IFPRI) in its series EPTD discussion papers with number 95.

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Date of creation: 2002
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Handle: RePEc:fpr:eptddp:95

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Keywords: Brazil.; Crop diversification.; Crop yields.; Research Economic aspects.; Agricultural research.; Rice.; Soybean industry.; Rate of return.;

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Pender, John & Jagger, Pamela & Nkonya, Ephraim & Sserunkuuma, Dick, 2004. "Development Pathways and Land Management in Uganda," World Development, Elsevier, vol. 32(5), pages 767-792, May. [Downloadable!] (restricted)
  2. Alston, Julian M. & Craig, Barbara J. & Pardey, Philip G., 1998. "Dynamics in the creation and depreciation of knowledge, and the returns to research:," EPTD discussion papers 35, International Food Policy Research Institute (IFPRI). [Downloadable!]
  3. Martin, Will & Alston, Julian M, 1997. "Producer Surplus without Apology? Evaluating Investments in R&D," The Economic Record, The Economic Society of Australia, vol. 73(221), pages 146-58, June.
  4. Fullerton, Don, 1991. "Reconciling Recent Estimates of the Marginal Welfare Cost of Taxation," American Economic Review, American Economic Association, vol. 81(1), pages 302-08, March. [Downloadable!] (restricted)
  5. Pardey, Philip G. & Alston, Julian M. & Christian, Jason E. & Fan, Shenggen., 1996. "Hidden harvest," Food policy reports 6, International Food Policy Research Institute (IFPRI).
  6. Pardey, Philip G. & Alston, Julian M. & Christian, Jason E. & Fan, Shenggen, 1996. "Summary of a productive partnership: the benefits from U.S. participation in the CGIAR," EPTD discussion papers 18, International Food Policy Research Institute (IFPRI). [Downloadable!]
  7. Peter Hazell & Chakravorty, Ujjayant & Dixon, John & Celis, Rafael, 2001. "Monitoring systems for managing natural resources: economics, indicators and environmental externalities in a Costa Rican watershed," EPTD discussion papers 73, International Food Policy Research Institute (IFPRI). [Downloadable!]
  8. Alan L. Olmstead & Paul W. Rhode, 2002. "The Red Queen and the Hard Reds: Productivity Growth in American Wheat, 1800-1940," NBER Working Papers 8863, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  9. Alston, Julian M. & Pardey, Philip G., 2001. "Attribution and other problems in assessing the returns to agricultural R&D," Agricultural Economics, Blackwell, vol. 25(2-3), pages 141-152, September. [Downloadable!] (restricted)
  10. Roseboom, Johannes & Pardey, Philip G. & Beintema, Nienke M., 1998. "The changing organizational basis of African agricultural research:," EPTD discussion papers 37, International Food Policy Research Institute (IFPRI). [Downloadable!]
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  1. Chan-Kang, Connie & Fan, Shenggen & Qian, Keming, 2003. "National and International Agricultural Research and Poverty: Findings in the case of wheat in China," 2003 Annual meeting, July 27-30, Montreal, Canada 22185, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
  2. Jaffe, Gregory, 2006. "Comparative analysis of the national biosafety regulatory systems in East Africa:," EPTD discussion papers 146, International Food Policy Research Institute (IFPRI). [Downloadable!]
  3. Gauchan, Devendra & Van Dusen, M. E. & Smale, Melinda, 2005. "On farm conservation of rice biodiversity in Nepal: a simultaneous estimation approach," EPTD discussion papers 144, International Food Policy Research Institute (IFPRI). [Downloadable!]
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  4. You, Liangzhi & Rosegrant, Mark W. & Fang, Cheng & Wood, Stanley, 2005. "Impact of global warming on Chinese wheat productivity:," EPTD discussion papers 143, International Food Policy Research Institute (IFPRI). [Downloadable!]
  5. Nweke, Felix, 2004. "New challenges in the cassava transformation in Nigeria and Ghana:," EPTD discussion papers 118, International Food Policy Research Institute (IFPRI). [Downloadable!]
  6. Linacre, Nicholas A. & Whiting, Steven N. & Angle, J. Scott, 2005. "Incorporating project uncertainty in novel environmental biotechnologies: illustrated using phytoremediation," EPTD discussion papers 132, International Food Policy Research Institute (IFPRI). [Downloadable!]
  7. Nagarajan, Latha & Smale, Melinda, 2005. "Local seed systems and village-level determinants of millet crop diversity in marginal environments of India:," EPTD discussion papers 135, International Food Policy Research Institute (IFPRI). [Downloadable!]
  8. Rodgers, Charles & Hellegers, Petra J.G.J., 2005. "Water pricing and valuation in Indonesia: case study of the Brantas River Basin," EPTD discussion papers 141, International Food Policy Research Institute (IFPRI). [Downloadable!]
  9. Smale, Melinda & Zambrano, Patricia & Falck-Zepeda, José & Gruère, Guillaume, 2006. "Parables: applied economics literature about the impact of genetically engineered crop varieties in developing economies," EPTD discussion papers 158, International Food Policy Research Institute (IFPRI). [Downloadable!]
  10. Linacre, Nicholas A. & Koo, Bonwoo & Rosegrant, Mark W. & Msangi, Siwa & Falck-Zepeda, José & Gaskell, Joanne & Komen, John & Cohen, Marc J. & Birner, Regina, 2005. "Security analysis for agroterrorism: applying the threat, vulnerability, consequence framework to developing countries," EPTD discussion papers 138, International Food Policy Research Institute (IFPRI). [Downloadable!]
  11. Engel, Stefanie & Iskandarani, Maria & Useche, Maria del Pilar, 2005. "Improved water supply in the Ghanaian Volta Basin: who uses it and who participates in community decision-making?," EPTD discussion papers 129, International Food Policy Research Institute (IFPRI). [Downloadable!]
  12. Pardey, Philip G. & Koo, Bonwoo & Nottenburg, Carol, 2004. "Creating, Protecting, And Using Crop Biotechnologies Worldwide In An Era Of Intellectual Property," Staff Papers 13600, University of Minnesota, Department of Applied Economics. [Downloadable!]
  13. Linacre, Nicholas & Falck-Zepeda, José & Komen, John & MacLaren, Donald, 2006. "Risk assessment and management of genetically modified organisms under Australia's Gene Technology Act:," EPTD discussion papers 157, International Food Policy Research Institute (IFPRI). [Downloadable!]
  14. Horna, J. Daniela & Smale, Melinda & von Oppen, Matthias, 2005. "Farmer willingness to pay for seed-related information: rice varieties in Nigeria and Benin," EPTD discussion papers 142, International Food Policy Research Institute (IFPRI). [Downloadable!]
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  15. Nagarajan, Latha & Smale, Melinda & Glewwe, Paul, 2005. "Comparing farm and village-level determinants of millet diversity in marginal environments of India: the context of seed systems," EPTD discussion papers 139, International Food Policy Research Institute (IFPRI). [Downloadable!]
  16. Linacre, Nicholas A. & Thompson, Colin J., 2005. "The emergence of insect resistance in Bt-corn: implication of resistance management information under uncertainty," EPTD discussion papers 136, International Food Policy Research Institute (IFPRI). [Downloadable!]
  17. Linacre, Nicholas A. & Gaskell, Joanne & Rosegrant, Mark W. & Falck-Zepeda, José & Quemada, Hector & Halsey, Mark & Birner, Regina, 2005. "Analysis for biotechnology innovations using Strategic Environmental Assessment (SEA):," EPTD discussion papers 140, International Food Policy Research Institute (IFPRI). [Downloadable!]
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