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Can foods produced with new plant engineering techniques succeed in the marketplace? A case study of apples

Author

Listed:
  • Stéphan Marette

    (ECO-PUB - Economie Publique - INRA - Institut National de la Recherche Agronomique - INA P-G - Institut National Agronomique Paris-Grignon)

  • John Beghin

    (University of Nebraska–Lincoln - University of Nebraska System)

  • Anne‐célia Disdier

    (PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)

  • Eliza Mojduszka

    (US Department of Agriculture Office of the Chief Economist)

Abstract

We present a model for research and development (R&D) investment in food innovations based on new plant engineering techniques (NPETs) and traditional hybridization methods. The framework combines uncertain and costly food innovation with consumers' willingness to pay (WTP) for the new food. The framework is applied with elicited WTP of French and US consumers for new improved apples. NPETs may be socially beneficial under full information and when the probability of success under NPETs is relatively high. Otherwise, the traditional hybridization is socially optimal. A probable collapse of conventional apples raises the social desirability of new apples generated by NPETs and traditional hybridization.

Suggested Citation

  • Stéphan Marette & John Beghin & Anne‐célia Disdier & Eliza Mojduszka, 2023. "Can foods produced with new plant engineering techniques succeed in the marketplace? A case study of apples," Post-Print halshs-04156137, HAL.
    • Handle: RePEc:hal:journl:halshs-04156137
    DOI: 10.1002/aepp.13208
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    References listed on IDEAS

    as
    1. Stephan S. Marette & Anne-Célia Disdier & John C Beghin, 2020. "A Comparison of EU and US consumers' willingness to pay for gene-edited food: Evidence from apples," PSE Working Papers halshs-02872222, HAL.
    2. Rousu, Matthew C. & Marette, Stéphan & Thrasher, James F. & Lusk, Jayson L., 2014. "The economic value to smokers of graphic warning labels on cigarettes: Evidence from combining market and experimental auction data," Journal of Economic Behavior & Organization, Elsevier, vol. 108(C), pages 123-134.
    3. Matin Qaim, 2020. "Role of New Plant Breeding Technologies for Food Security and Sustainable Agricultural Development," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 42(2), pages 129-150, June.
    4. Stéphan Marette & Jutta Roosen & Sandrine Blanchemanche, 2008. "Taxes and subsidies to change eating habits when information is not enough: an application to fish consumption," Journal of Regulatory Economics, Springer, vol. 34(2), pages 119-143, October.
    5. Yokessa, Maïmouna & Marette, Stéphan, 2019. "A Review of Eco-labels and their Economic Impact," International Review of Environmental and Resource Economics, now publishers, vol. 13(1-2), pages 119-163, April.
    6. Mario F. Teisl & Nancy E. Bockstael & Alan Levy, 2001. "Measuring the Welfare Effects of Nutrition Information," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(1), pages 133-149.
    7. John C. Beghin & Christopher R. Gustafson, 2021. "Consumer Valuation of and Attitudes towards Novel Foods Produced with New Plant Engineering Techniques: A Review," Sustainability, MDPI, vol. 13(20), pages 1-17, October.
    8. Foster, William & Just, Richard E., 1989. "Measuring welfare effects of product contamination with consumer uncertainty," Journal of Environmental Economics and Management, Elsevier, vol. 17(3), pages 266-283, November.
    9. Jayson L. Lusk & Ted C. Schroeder, 2004. "Are Choice Experiments Incentive Compatible? A Test with Quality Differentiated Beef Steaks," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(2), pages 467-482.
    10. Beghin, John C. & Gustafson, Christopher R., 2021. "Consumer valuation of and attitudes towards novel foods produced with NPETs: A review," ISU General Staff Papers 202108250700001133, Iowa State University, Department of Economics.
    11. Violet Muringai & Xiaoli Fan & Ellen Goddard, 2020. "Canadian consumer acceptance of gene‐edited versus genetically modified potatoes: A choice experiment approach," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 68(1), pages 47-63, March.
    12. Matthew Rousu & Wallace E. Huffman & Jason F. Shogren & Abebayehu Tegene, 2007. "Effects And Value Of Verifiable Information In A Controversial Market: Evidence From Lab Auctions Of Genetically Modified Food," Economic Inquiry, Western Economic Association International, vol. 45(3), pages 409-432, July.
    13. C. Gonsalves & D. R. Lee & D. Gonsalves, 2007. "The Adoption of genetically modified papaya in Hawaii and its implications for developing countries," Journal of Development Studies, Taylor & Francis Journals, vol. 43(1), pages 177-191.
    14. Jutta Roosen & Stéphan Marette, 2011. "Making the "right" choice based on experiments: regulatory decisions for food and health," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 38(3), pages 361-381, August.
    15. Lusk, Jayson L. & Marette, Stephan, 2010. "Appendix to: Welfare Effects of Food Labels and Bans with Alternative Willingness to Pay Measures," Applied Economic Perspectives and Policy Appendices 55428, Agricultural and Applied Economics Association.
    16. Anna K. Edenbrandt & Christian Gamborg & Bo J. Thorsen, 2018. "Consumers’ Preferences for Bread: Transgenic, Cisgenic, Organic or Pesticide†free?," Journal of Agricultural Economics, Wiley Blackwell, vol. 69(1), pages 121-141, February.
    17. Jayson L. Lusk & Stéphan Marette, 2010. "Welfare Effects of Food Labels and Bans with Alternative Willingness to Pay Measures," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 32(2), pages 319-337.
    18. Stephan Marette & Anne-Célia Disdier & John Beghin, 2020. "A Comparison of EU and US consumers' willingness to pay for gene-edited food: Evidence from apples," PSE Working Papers halshs-02872222, HAL.
    19. Kai Purnhagen & Justus Wesseler, 2021. "EU Regulation of New Plant Breeding Technologies and Their Possible Economic Implications for the EU and Beyond," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 43(4), pages 1621-1637, December.
    20. Lusk, Jayson L. & Jamal, Mustafa & Kurlander, Lauren & Roucan, Maud & Taulman, Lesley, 2005. "A Meta-Analysis of Genetically Modified Food Valuation Studies," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 30(1), pages 1-17, April.
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    1. Stéphan Marette & Anne‐Célia Disdier & Anastasia Bodnar & John Beghin, 2023. "New plant engineering techniques, R&D investment and international trade," Journal of Agricultural Economics, Wiley Blackwell, vol. 74(2), pages 349-368, June.
    2. John C. Beghin & Christopher R. Gustafson, 2021. "Consumer Valuation of and Attitudes towards Novel Foods Produced with New Plant Engineering Techniques: A Review," Sustainability, MDPI, vol. 13(20), pages 1-17, October.

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