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Genetically Modified Rice Adoption: Implications for Welfare and Poverty Alleviation

  • Kym Anderson

    ()

    (World Bank)

  • Lee Ann Jacskon

    (WTO Secretariat, Geneva)

  • Chantal Pohl Nielsen

    (Danish Research Institute of Food Economics, Copenhagen)

The first generation of genetically modified (GM) crop varieties sought to increase farmer profitability through cost reductions or higher yields. The next generation of GM food research is focusing also on breeding for attributes of interest to consumers, beginning with ‘golden rice’, which has been genetically engineered to contain a higher level of vitamin A and thereby boost the health of poor people in developing countries. This paper analyses empirically the potential economic effects of adopting both types of innovation in Asia, including its impact on rice producers and other poor households. It does so using the global economy-wide computable general equilibrium model known as GTAP. The results suggest the very considerable farm productivity gains (even if extended beyond GM rice to include those from adopting other GM grains and oilseeds) could be exceeded by the welfare gains resulting from the potential health-enhancing attributes of golden rice, which would boost the productivity of unskilled workers among Asia’s poor.

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Paper provided by University of Adelaide, Centre for International Economic Studies in its series Centre for International Economic Studies Working Papers with number 2004-13.

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Length: 32 pages
Date of creation: Nov 2004
Date of revision:
Handle: RePEc:adl:cieswp:2004-13
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  1. van Tongeren, Frank W. & van Meijl, Hans, 2003. "International Diffusion Of Gains From Biotechnology And The European Union'S Common Agricultural Policy," 2003 Annual Meeting, August 16-22, 2003, Durban, South Africa 25835, International Association of Agricultural Economists.
  2. Kym Anderson & Chantal Nielsen, 2002. "Economic Effects of Agricultural Biotechnology Research in the Presence of Price-distorting Policies," Centre for International Economic Studies Working Papers 2002-32, University of Adelaide, Centre for International Economic Studies.
  3. W. Jill Harrison & J. Mark Horridge & K.R. Pearson, 1999. "Decomposing Simulation Results with Respect to Exogenous Shocks," Centre of Policy Studies/IMPACT Centre Working Papers ip-73, Victoria University, Centre of Policy Studies/IMPACT Centre.
  4. Zimmermann, Roukayatou & Qaim, Matin, 2002. "Projecting The Benefits Of Golden Rice In The Philippines," Discussion Papers 18753, University of Bonn, Center for Development Research (ZEF).
  5. Chantal Nielsen & Kym Anderson, 2001. "Global market effects of alternative European responses to genetically modified organisms," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 137(2), pages 320-346, June.
  6. Dawe, D. & Robertson, R. & Unnevehr, L., 2002. "Golden rice: what role could it play in alleviation of vitamin A deficiency?," Food Policy, Elsevier, vol. 27(5-6), pages 541-560.
  7. W. Jill Harrison & K.R. Pearson, 1994. "Computing Solutions for Large General Equilibrium Models Using GEMPACK," Centre of Policy Studies/IMPACT Centre Working Papers ip-64, Victoria University, Centre of Policy Studies/IMPACT Centre.
  8. Jackson, Lee Ann & Anderson, Kym, 2003. "WHY ARE US AND EU POLICIES TOWARD GMOs SO DIFFERENT?," 2003 Conference (47th), February 12-14, 2003, Fremantle, Australia 57898, Australian Agricultural and Resource Economics Society.
  9. Huang, Jikun & Hu, Ruifa & van Meijl, Hans & van Tongeren, Frank, 2004. "Biotechnology boosts to crop productivity in China: trade and welfare implications," Journal of Development Economics, Elsevier, vol. 75(1), pages 27-54, October.
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