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International Diffusion Of Gains From Biotechnology And The European Union'S Common Agricultural Policy

  • van Tongeren, Frank W.
  • van Meijl, Hans

This paper analyses the impact of adopting or rejecting genetically modified GM crops in the EU, taking into account the European Union's Common Agricultural Policy (CAP). In this paper the productivity impact of GMs differs across crops, as it takes factor biased technology change into account. The transfer of knowledge across countries is modelled as a process of endogenous knowledge spillovers. Analyses with a multi-region applied general equilibrium model shows that the CAP protects farm income and production from not adopting GM crops in the EU but has costs in terms of welfare. The EU will forgo substantial benefits if it banned GM imports.

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File URL: http://purl.umn.edu/25835
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Paper provided by International Association of Agricultural Economists in its series 2003 Annual Meeting, August 16-22, 2003, Durban, South Africa with number 25835.

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Date of creation: 2003
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Handle: RePEc:ags:iaae03:25835
Contact details of provider: Web page: http://www.iaae-agecon.org/
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  1. Hans van Meijl & Frank van Tongeren, 2002. "The Agenda 2000 CAP reform, world prices and GATT--WTO export constraints," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 29(4), pages 445-470, December.
  2. Geroski, Paul A, 1999. "Models of Technology Diffusion," CEPR Discussion Papers 2146, C.E.P.R. Discussion Papers.
  3. Barro, Robert J. & Lee, Jong-Wha, 1993. "International comparisons of educational attainment," Journal of Monetary Economics, Elsevier, vol. 32(3), pages 363-394, December.
  4. Hans Meijl & Frank Tongeren, 1998. "Trade, technology spillovers, and food production in China," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 134(3), pages 423-449, September.
  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.
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