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Genetic Modification Technology and Producer Returns: The Impacts of Productivity, Preferences, and Technology Uptake

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  • William H. Kaye-Blake
  • Caroline M. Saunders
  • Selim Cagatay

Abstract

Modern biotechnology can produce genetically modified crops that are more productive or provide qualities some consumers might prefer. This article presents a partial equilibrium model of international agricultural commodity trade, which is used to examine the effects on producer returns of productivity, consumer preferences, and uptake rates of genetically modified crops. Both first- and second-generation genetically modified crops are considered. The analysis focuses on gross returns to agricultural producers in Australia, the European Union, New Zealand, and the United States. Results suggest that these regions are affected differently by productivity changes and consumer reactions to genetically modified crops.

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  • William H. Kaye-Blake & Caroline M. Saunders & Selim Cagatay, 2008. "Genetic Modification Technology and Producer Returns: The Impacts of Productivity, Preferences, and Technology Uptake," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 30(4), pages 692-710.
    • Handle: RePEc:oup:revage:v:30:y:2008:i:4:p:692-710.
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    File URL: http://hdl.handle.net/10.1111/j.1467-9353.2008.00441.x
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    1. Antoine Bouët & Guillaume P. Gruère, 2011. "Refining Opportunity Cost Estimates of Not Adopting GM Cotton: An Application in Seven Sub-Saharan African Countries," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 33(2), pages 260-279.
    2. Çağatay, Selim & Taşdoğan, Celal & Özeş, Reyhan, 2017. "Analysing the impact of targeted bio-ethanol blending ratio in Turkey," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), vol. 6(2), September.
    3. Antoine Bouet & Guillaume Gruère, 2010. "Refining opportunity cost estimates of not adopting GM cotton : An application in seven sub-saharan african countries," Larefi Working Papers 201002, Larefi, Université Bordeaux 4.
    4. Dalziel, Paul & Saunders, Caroline & Tait, Peter & Saunders, John & Miller, Sini & Guenther, Meike & Rutherford, Paul & Driver, Tim, 2018. "Rewarding responsible innovation when consumers are distant from producers: evidence from New Zealand," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 21(4).

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