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Economic Benefits and Costs of Biotechnology Innovations in Agriculture

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Abstract

The conceptual model necessary for an assessment of biotechnology's economic benefits and costs is outlined, emphasizing the need to account for the proprietary nature of biotechnology innovations. The model is illustrated with an application to Roundup Ready soybeans. The estimated value of this innovation is sizeable, with consumers and innovators claiming the larger share of net benefits. Also, disparities in intellectual property rights protection across countries affect the distribution of benefits. Consumer resistance toward genetically modified organisms (GMOs) and the issues of labeling and market segregation complicate the economic evaluation of biotechnology innovations, and a number of related regulation and public policy issues are discussed. Emerging output-trait GMOs are potentially less controversial and ma y bring more benefits to all participants in the agri-food sector, but this outcome depends crucially on the development of an effective, credible, and internationally harmonized regulatory system.

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Paper provided by Center for Agricultural and Rural Development (CARD) at Iowa State University in its series Center for Agricultural and Rural Development (CARD) Publications with number 01-wp264.

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Date of creation: Jun 2001
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Handle: RePEc:ias:cpaper:01-wp264

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  1. 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.
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Cited by:
  1. Roselli, Luigi & Seccia, Antonio & Stasi, Antonio, 2006. "Atteggiamento dei consumatori nei confronti dell’evoluzione del sistema agro-alimentare: L’introduzione di alimenti geneticamente modificati
    [Consumers' attitude towards the new element of evol
    ," MPRA Paper 11776, University Library of Munich, Germany.
  2. Gil-Delgado, Maria De Los Reyes Corripio & Diez, Maria Del Carmen Fernandez, 2003. "Is Intellectual Property Right Legislation Constraining The Agrifood Biotechnology Sector In The European Union?," Working Papers 28563, University of Maryland, Department of Agricultural and Resource Economics.

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