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Biotech-Who Wins? Economic Benefits and Costs of Biotechnology Innovations in Agriculture

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  • Moschini, GianCarlo

Abstract

The conceptual model necessary for an assessment of biotechnology's economic benefits and costs is outlined, emphasizing the need to account for the proprietary nature of biotechnology innovations. The model is illustrated with an application to Roundup Ready soybeans. The estimated value of this innovation is sizeable, with consumers and innovators claiming the largest shares of net benefits. Also, disparities in intellectual property rights protection across countries affect the distribution of benefits. Consumer resistance toward GMOs and the issue of labelling and market segregation complicate the economic evaluation of biotechnology innovations; a number of related regulation and public policy issues are discussed. Emerging output-trait GMOs are potentially less controversial than some earlier GMOs and may bring more benefits to all participants in the agri-food sector, but this outcome depends crucially on the development of an effective, credible, and internationally harmonized regulatory system.
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Suggested Citation

  • Moschini, GianCarlo, 2001. "Biotech-Who Wins? Economic Benefits and Costs of Biotechnology Innovations in Agriculture," Staff General Research Papers Archive 5125, Iowa State University, Department of Economics.
    • Handle: RePEc:isu:genres:5125
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    Cited by:

    1. Johnson, D. Demcey & Lin, William & Vocke, Gary, 2005. "Economic and welfare impacts of commercializing a herbicide-tolerant, biotech wheat," Food Policy, Elsevier, vol. 30(2), pages 162-184, April.
    2. Taing, William & Ahmadi-Esfahani, Fredoun Z., 2009. "GM technology and the Australian canola," 2009 Conference (53rd), February 11-13, 2009, Cairns, Australia 48191, Australian Agricultural and Resource Economics Society.
    3. Richard Carew & Stephen Devadoss, 2003. "Quantifying the Contribution of Plant Breeders’Rights and Transgenic Varieties to Canola Yields: Evidence from Manitoba," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 51(3), pages 371-395, November.
    4. Antonio Seccia & Antonio Stasi & Luigi Roselli, 2006. "Atteggiamento dei consumatori nei confronti dell'evoluzione del sistema agro-alimentare: l'introduzione di alimenti geneticamente modificati," Economia agro-alimentare, FrancoAngeli Editore, vol. 10(1).
    5. Mario F. Teisl & Julie A. Caswell, 2003. "Information Policy and Genetically Modified Food: Weighting the Benefits and Costs," QA - Rivista dell'Associazione Rossi-Doria, Associazione Rossi Doria, issue 4, March.
    6. Harvey E. Lapan & Giancarlo Moschini, 2004. "Innovation and Trade with Endogenous Market Failure: The Case of Genetically Modified Products," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(3), pages 634-648.
    7. Busdieker-Jesse, Nichole L. & Nogueira, Lia & Onal, Hayri & Bullock, David S., 2016. "The Economic Impact of New Technology Adoption on the U.S. Apple Industry," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 41(3), pages 1-21, September.
    8. Bruno Larue & Gale E. West & Carole Gendron & Rémy Lambert, 2004. "Consumer response to functional foods produced by conventional, organic, or genetic manipulation," Agribusiness, John Wiley & Sons, Ltd., vol. 20(2), pages 155-166.

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