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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. Copyright 2008, Oxford University Press.

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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. Shoemaker, Robbin A. & Harwood, Joy L. & Day-Rubenstein, Kelly A. & Dunahay, Terry & Heisey, Paul W. & Hoffman, Linwood A. & Klotz-Ingram, Cassandra & Lin, William W. & Mitchell, Lorraine & McBride, W, 2001. "Economic Issues In Agricultural Biotechnology," Agricultural Information Bulletins 33735, United States Department of Agriculture, Economic Research Service.
    2. Daniel C. Monchuk & John A. Miranowski & Dermot J. Hayes & Bruce A. Babcock, 2007. "An Analysis of Regional Economic Growth in the U.S. Midwest," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 29(1), pages 17-39.
    3. Rigby, Dan & Burton, Michael P., 2003. "Capturing Preference Heterogeneity in Stated Choice Models: A Random Parameter Logit Model of the Demand for GM Food," 2003 Conference (47th), February 12-14, 2003, Fremantle, Australia 58200, Australian Agricultural and Resource Economics Society.
    4. Kaye-Blake, William & Bicknell, Kathryn & Saunders, Caroline M., 2005. "Process versus product: which determines consumer demand for genetically modified apples?," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 49(4), December.
    5. Fernandez-Cornejo, Jorge & McBride, William D., 2002. "Adoption Of Bioengineered Crops," Agricultural Economics Reports 33957, United States Department of Agriculture, Economic Research Service.
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