IDEAS home Printed from https://ideas.repec.org/p/ags/nbaesp/313493.html

New Plant Engineering Techniques, R&D Investment, and International Trade

Author

Listed:
  • Marette, Stéphan (Paris-Saclay)
  • Disdier, Anne-Célia (PSE)
  • Bodnar, Anastasia (USDA OCE)
  • Beghin, John C (UNL)

Abstract

New Plant Engineering Techniques (NPETs) may significantly improve both production and quality of foods. Consumers and regulators around the world might be reluctant to accept such products, which may cripple adoption and global market penetration of these products. We develop a parsimonious economic model for R&D investment in food innovations to identify conditions under which NPET technology emerges in a context of international trade. The framework integrates consumers’ willingness to pay (WTP) for the new food, the uncertainty of R&D processes, the associated regulatory cost of approval, and the competition between domestic and foreign products. With generic applicability, the model enables the quantitative analysis of new foods that could be introduced in markets and then traded across borders. We apply the framework to a hypothetical case of apples improved with NPETs. Simulation results suggest that import bans and high values of sunk costs can reduce R&D investment in NPETs to suboptimal levels.

Suggested Citation

  • Marette, Stéphan (Paris-Saclay) & Disdier, Anne-Célia (PSE) & Bodnar, Anastasia (USDA OCE) & Beghin, John C (UNL), "undated". "New Plant Engineering Techniques, R&D Investment, and International Trade," Staff Papers 313493, University of Nebraska-Lincoln, Department of Agricultural Economics.
    • Handle: RePEc:ags:nbaesp:313493
    DOI: 10.22004/ag.econ.313493
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/313493/files/UNL%20working%20paper%202021%206%20revised%20june%206%202022.pdf
    Download Restriction: no
    File URL: https://ageconsearch.umn.edu/record/313493/files/ge%20and%20trade.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.313493?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:nbaesp:313493. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/daunlus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.