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Rejecting New Technology: The Case of Genetically Modified Wheat

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  • Derek Berwald
  • Colin A. Carter
  • Guillaume P. Gruère

Abstract

Canada has stringent regulations covering the release of new wheat varieties, but the United States has virtually no regulations in this area. Monsanto Co. developed genetically modified (GM) spring wheat for North America, and made a commitment to the U.S. industry to release this new technology simultaneously in both Canada and the United States, or not at all. The Canadian regulatory bias against new varieties acted as a veto against GM wheat and caused Monsanto to shelve the technology in both countries in 2004. Substantial economic rents were foregone in North America due to the rejection of this new technology. Copyright 2006, Oxford University Press.

Suggested Citation

  • Derek Berwald & Colin A. Carter & Guillaume P. Gruère, 2006. "Rejecting New Technology: The Case of Genetically Modified Wheat," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 88(2), pages 432-447.
  • Handle: RePEc:oup:ajagec:v:88:y:2006:i:2:p:432-447
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    File URL: http://hdl.handle.net/10.1111/j.1467-8276.2006.00869.x
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    Citations

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    Cited by:

    1. Gruere, Guillaume P. & Mevel, Simon & Bouet, Antoine, 2007. "Genetically Modified Rice, International Trade, and First-Mover Advantage: The Case of India and China," China's Agricultural Trade: Issues and Prospects Symposium, July 2007, Beijing, China 55032, International Agricultural Trade Research Consortium.
    2. Gruère, Guillaume & Sengupta, Debdatta, 2009. "GM-free private standards and their effects on biosafety decision-making in developing countries," Food Policy, Elsevier, vol. 34(5), pages 399-406, October.
    3. Wilson, William W. & Huso, Scott R., 2008. "Trait Stacking, Licensing, and Seed Firm Acquisitions on Genetically Modified Grains: A Strategic Analysis," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 33(3), December.
    4. Tiffany Shih & Brian Wright, 2011. "Agricultural Innovation," NBER Chapters,in: Accelerating Energy Innovation: Insights from Multiple Sectors, pages 49-85 National Bureau of Economic Research, Inc.
    5. de Faria, Rosane Nunes & Wieck, Christine, 2014. "Measuring The Extent Of Gmo Asynchronous Approval Using Regulatory Dissimilarity Indices: The Case Of Maize And Soybean," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182796, European Association of Agricultural Economists.
    6. Bullock, David S. & Dadakas, Dimitrios & Katranidis, Stelios D., 2009. "Measuring the Effects of Technology Change in Multiple Markets : Application to the Greek Cotton Yarn Industry," MPRA Paper 67204, University Library of Munich, Germany, revised 2012.
    7. Ambec, Stefan & Langinier, Corinne & Marcoul, Philippe, 2011. "Spatial Efficiency of Genetically Modified and Organic Crops," LERNA Working Papers 11.18.352, LERNA, University of Toulouse.
    8. Zhao, Li & Gu, Haiying & Yue, Chengyan & Ahlstrom, David, 2013. "Consumer welfare and GM food labeling: A simulation using an adjusted Kumaraswamy distribution," Food Policy, Elsevier, vol. 42(C), pages 58-70.
    9. Taing, William & Ahmadi-Esfahani, Fredoun Z., 2009. "GM technology and the Australian canola," 2009 Conference (53rd), February 11-13, 2009, Cairns, Australia 48191, Australian Agricultural and Resource Economics Society.
    10. Guillaume P. Gruère & Simon Mevel & Antoine Bouët, 2009. "Balancing productivity and trade objectives in a competing environment: should India commercialize GM rice with or without China?," Agricultural Economics, International Association of Agricultural Economists, vol. 40(4), pages 459-475, July.
    11. de Faria, Rosane Nunes & Wieck, Christine, 2015. "Empirical evidence on the trade impact of asynchronous regulatory approval of new GMO events," Food Policy, Elsevier, vol. 53(C), pages 22-32.

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