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The Economic Impacts of Biotechnology-Based Technological Innovations

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  • Greg Traxler

Abstract

Global adoption of transgenic crops reached 67.7 million hectares in 2003 from 2.8 million in 1996. Delivery has occurred almost entirely through the private sector and adoption has been rapid in areas where the crops addressed serious production constraints and where farmers had access to the new technologies. Three countries (USA, Argentina and Canada), three crops (soybean, cotton and maize) and two traits (insect resistance and herbicide tolerance) account for the vast majority of global transgenic area. While some farmers in some developing countries are benefiting, most do not have access to transgenic crops and traits that address their needs. This paper surveys the level and distribution of the economic impacts of transgenic cotton and soybeans to date and reviews the impacts of these crops on chemical pesticide and herbicide use. It concludes with some considerations of ways to address the development and delivery of technological innovations to small farmers in developing countries.

Suggested Citation

  • Greg Traxler, 2004. "The Economic Impacts of Biotechnology-Based Technological Innovations," Working Papers 04-08, Agricultural and Development Economics Division of the Food and Agriculture Organization of the United Nations (FAO - ESA).
    • Handle: RePEc:fao:wpaper:0408
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    References listed on IDEAS

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    1. Giancarlo Moschini & Harvey Lapan & Andrei Sobolevsky, 2000. "Roundup ready® soybeans and welfare effects in the soybean complex," Agribusiness, John Wiley & Sons, Ltd., vol. 16(1), pages 33-55.
    2. Hubbell, Bryan J. & Marra, Michele C. & Carlson, Gerald A., 2000. "Estimating The Demand For A New Technology: Bt Cotton And Insecticide Policies In The Southeast," Transitions in Agbiotech: Economics of Strategy and Policy, June 24-25, 1999, Washington, D.C. 26016, Regional Research Project NE-165 Private Strategies, Public Policies, and Food System Performance.
    3. Fernandez-Cornejo, Jorge & McBride, William D., 2000. "Genetically Engineered Crops For Pest Management In U.S. Agriculture," Agricultural Economic Reports 33931, United States Department of Agriculture, Economic Research Service.
    4. Giancarlo Moschini & Harvey Lapan, 1997. "Intellectual Property Rights and the Welfare Effects of Agricultural R&D," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(4), pages 1229-1242.
    5. Bryan J. Hubbell & Michele C. Marra & Gerald A. Carlson, 2000. "Estimating the Demand for a New Technology: Bt Cotton and Insecticide Policies," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(1), pages 118-132.
    6. Pray, Carl & Ma, Danmeng & Huang, Jikun & Qiao, Fangbin, 2001. "Impact of Bt Cotton in China," World Development, Elsevier, vol. 29(5), pages 813-825, May.
    7. Marra, Michele C. & Pardey, Philip G. & Alston, Julian M., 2002. "The payoffs to agricultural biotechnology: an assessment of the evidence," EPTD discussion papers 87, International Food Policy Research Institute (IFPRI).
    8. José Benjamin Falck-Zepeda & Greg Traxler & Robert G. Nelson, 2000. "Surplus Distribution from the Introduction of a Biotechnology Innovation," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(2), pages 360-369.
    9. Jose B. Falck-Zepeda & Greg Traxler & Robert G. Nelson, 2000. "Rent creation and distribution from biotechnology innovations: The case of bt cotton and Herbicide-Tolerant soybeans in 1997," Agribusiness, John Wiley & Sons, Ltd., vol. 16(1), pages 21-32.
    10. Matin Qaim & Greg Traxler, 2005. "Roundup Ready soybeans in Argentina: farm level and aggregate welfare effects," Agricultural Economics, International Association of Agricultural Economists, vol. 32(1), pages 73-86, January.
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    Cited by:

    1. Eicher, Carl K. & Maredia, Karim & Sithole-Niang, Idah, 2006. "Crop biotechnology and the African farmer," Food Policy, Elsevier, vol. 31(6), pages 504-527, December.
    2. Carl E. Pray & Anwar Naseem, 2003. "Biotechnology R&D: Policy options to ensure access and benefits for the poor," Working Papers 03-08, Agricultural and Development Economics Division of the Food and Agriculture Organization of the United Nations (FAO - ESA).

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    More about this item

    Keywords

    Agricultural development; Agricultural research; Biotechnology; Cotton; Innovation adoption; Maize; Plant biotechnology; Technological changes;
    All these keywords.

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q16 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - R&D; Agricultural Technology; Biofuels; Agricultural Extension Services

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