IDEAS home Printed from https://ideas.repec.org/a/bla/agecon/v40y2009i4p477-492.html
   My bibliography  Save this article

Ex ante analysis of the benefits of transgenic drought tolerance research on cereal crops in low‐income countries

Author

Listed:
  • Genti Kostandini
  • Bradford F. Mills
  • Steven Were Omamo
  • Stanley Wood

Abstract

This article develops a framework to examine the ex ante benefits of transgenic research on drought in eight low‐income countries, including the benefits to producers and consumers from farm income stabilization and the potential magnitude of private sector profits from intellectual property rights (IPRs). The framework employs country‐specific agroecological–drought risk zones and considers both yield increases and yield variance reductions when estimating producer and consumer benefits from research. Benefits from yield variance reductions are shown to be an important component of aggregate drought research benefits, representing 40% of total benefits across the eight countries. Further, estimated annual benefits of US$178 million to the private sector suggest that significant incentives exist for participation in transgenic drought tolerance research.

Suggested Citation

  • Genti Kostandini & Bradford F. Mills & Steven Were Omamo & Stanley Wood, 2009. "Ex ante analysis of the benefits of transgenic drought tolerance research on cereal crops in low‐income countries," Agricultural Economics, International Association of Agricultural Economists, vol. 40(4), pages 477-492, July.
  • Handle: RePEc:bla:agecon:v:40:y:2009:i:4:p:477-492
    DOI: 10.1111/j.1574-0862.2009.00392.x
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/j.1574-0862.2009.00392.x
    Download Restriction: no

    File URL: https://libkey.io/10.1111/j.1574-0862.2009.00392.x?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:

    References listed on IDEAS

    as
    1. Jayne, T. S. & Yamano, Takashi & Weber, Michael T. & Tschirley, David & Benfica, Rui & Chapoto, Antony & Zulu, Ballard, 2003. "Smallholder income and land distribution in Africa: implications for poverty reduction strategies," Food Policy, Elsevier, vol. 28(3), pages 253-275, June.
    2. Suleiman Abrar, 2003. "Estimating Supply Response in the Presence of Technical Inefficiency Using the Profit Function: An Application to Ethiopian Agriculture," Discussion Papers in Economics 03/4, Division of Economics, School of Business, University of Leicester.
    3. Greg Traxler & Jose Falck-Zepeda & J.I. Ortiz-Monasterio R. & Ken Sayre, 1995. "Production Risk and the Evolution of Varietal Technology," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 77(1), pages 1-7.
    4. Warr, Peter G., 2005. "Food policy and poverty in Indonesia: a general equilibrium analysis," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 49(4), pages 1-23.
    5. 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.
    6. Steven Were Omamo, 1998. "Transport Costs and Smallholder Cropping Choices: An Application to Siaya District, Kenya," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(1), pages 116-123.
    7. Hareau, Guy G. & Mills, Bradford F. & Norton, George W., 2006. "The potential benefits of herbicide-resistant transgenic rice in Uruguay: Lessons for small developing countries," Food Policy, Elsevier, vol. 31(2), pages 162-179, April.
    8. Jed Friedman & James Levinsohn, 2002. "The Distributional Impacts of Indonesia's Financial Crisis on Household Welfare: A "Rapid Response" Methodology," The World Bank Economic Review, World Bank, vol. 16(3), pages 397-423, December.
    9. Matin Qaim & Alain de Janvry, 2003. "Genetically Modified Crops, Corporate Pricing Strategies, and Farmers' Adoption: The Case of Bt Cotton in Argentina," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(4), pages 814-828.
    10. Salvatore Di Falco & Jean-Paul Chavas, 2006. "Crop genetic diversity, farm productivity and the management of environmental risk in rainfed agriculture," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 33(3), pages 289-314, September.
    11. Warr, Peter G., 2005. "Food Policy And Poverty: A General Equilibrium Analysis For Indonesia," 2005 Conference (49th), February 9-11, 2005, Coff's Harbour, Australia 139296, Australian Agricultural and Resource Economics Society.
    12. Arnab K. Basu & Matin Qaim, 2007. "On the Adoption of Genetically Modified Seeds in Developing Countries and the Optimal Types of Government Intervention," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 89(3), pages 784-804.
    13. Morris, Michael L. & Tripp, Robert & Dankyi, A.A., 1999. "Adoption and Impacts of Improved Maize Production Technology: A Case Study of the Ghana Grains Development Project," Economics Program Papers 48767, CIMMYT: International Maize and Wheat Improvement Center.
    14. Pardey, Philip G. & Beintema, Nienke M. & Dehmer, Steven & Wood, Stanley, 2006. "Agricultural research: a growing global divide?," Food policy reports 17, International Food Policy Research Institute (IFPRI).
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Genti Kostandini & Roberto La Rovere & Zhe Guo, 2016. "Ex Ante Welfare Analysis of Technological Change: The Case of Nitrogen Efficient Maize for African Soils," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 64(1), pages 147-168, March.
    2. You, Liangzhi & Wood, Stanley & Wood-Sichra, Ulrike & Wu, Wenbin, 2014. "Generating global crop distribution maps: From census to grid," Agricultural Systems, Elsevier, vol. 127(C), pages 53-60.
    3. Carl Pray & Latha Nagarajan & Luping Li & Jikun Huang & Ruifa Hu & K.N. Selvaraj & Ora Napasintuwong & R. Chandra Babu, 2011. "Potential Impact of Biotechnology on Adaption of Agriculture to Climate Change: The Case of Drought Tolerant Rice Breeding in Asia," Sustainability, MDPI, vol. 3(10), pages 1-19, September.
    4. Wanjira, John K. & Mburu, John I. & Nzuve, Felister M. & Makokha, Stella & Emongor, Rosemary A. & Taracha, Catheline, 2022. "Impact of climate-smart maize varieties on household income among smallholder farmers in Kenya: The case of Embu County," African Journal of Agricultural and Resource Economics, African Association of Agricultural Economists, vol. 17(3), September.
    5. Birthal, Pratap S. & Negi, Digvijay S. & Khan, Md. Tajuddin & Agarwal, Shaily, 2015. "Is Indian agriculture becoming resilient to droughts? Evidence from rice production systems," Food Policy, Elsevier, vol. 56(C), pages 1-12.
    6. Paul, Laura A., 2018. "The Downside of Good Rains: Drought Risk and WTP for Maize with Weather Contingent Advantages," 2018 Annual Meeting, August 5-7, Washington, D.C. 274471, Agricultural and Applied Economics Association.
    7. Malacarne, J.G. & Paul, L.A., 2022. "Do the benefits of improved management practices to nutritional outcomes “dry up” in the presence of drought? Evidence from East Africa," Food Policy, Elsevier, vol. 113(C).
    8. Kostandini, Genti & Abdoulaye, Tahirou & Erenstein, Olaf & Sonder, Kai & Gou, Zhe & Setimela, Peter & Menkir, Abebe, 2015. "Potential Impacts of Drought Tolerant Maize: New Evidence from Farm-trials in Eastern and Southern Africa," 89th Annual Conference, April 13-15, 2015, Warwick University, Coventry, UK 204219, Agricultural Economics Society.
    9. Huang, Jikun, 2013. "Financing Sustainable Agriculture Under Climate Change with a Specific Focus on Foreign Aid," WIDER Working Paper Series 047, World Institute for Development Economic Research (UNU-WIDER).
    10. Laura A Paul, 2021. "Heterogeneous and conditional returns from DT maize for farmers in Southern Africa [Long term consequences of early childhood malnutrition]," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 48(5), pages 1224-1248.
    11. Kostandini, Genti & La Rovere, Roberto & Abdoulaye, Tahirou, 2013. "Potential impacts of increasing average yields and reducing maize yield variability in Africa," Food Policy, Elsevier, vol. 43(C), pages 213-226.
    12. Birthal, Pratap Singh & Nigam, Shyam N. & Narayanan, A.V. & Kareem, K.A., 2012. "Potential Economic Benefits from Adoption of Improved Drought-tolerant Groundnut in India," Agricultural Economics Research Review, Agricultural Economics Research Association (India), vol. 25(1), June.
    13. Jikun Huang, 2013. "Financing Sustainable Agriculture Under Climate Change with a Specific Focus on Foreign Aid," WIDER Working Paper Series wp-2013-047, World Institute for Development Economic Research (UNU-WIDER).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Pham Van Ha & Hoa Thi Minh Nguyen & Tom Kompas & Tuong Nhu Che & Bui Trinh, 2015. "Rice Production, Trade and the Poor: Regional Effects of Rice Export Policy on Households in Vietnam," Journal of Agricultural Economics, Wiley Blackwell, vol. 66(2), pages 280-307, June.
    2. Peter Warr & Arief Anshory Yusuf, 2014. "World food prices and poverty in Indonesia," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 58(1), pages 1-21, January.
    3. Galli, Fabrizio & Naseem, Anwar & Singla, Rohit, 2012. "Welfare Effects of Herbicide-Tolerant Rice Adoption in Brazil," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126886, International Association of Agricultural Economists.
    4. Teguh Dartanto, 2010. "Volatility of World Rice Prices, Import Tariffs and Poverty in Indonesia : A CGE-Microsimulation Analysis," Economics and Finance in Indonesia, Faculty of Economics and Business, University of Indonesia, vol. 58, pages 335-364, December.
    5. B. Essama‐Nssah & Peter J. Lambert, 2009. "Measuring Pro‐Poorness: A Unifying Approach With New Results," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 55(3), pages 752-778, September.
    6. Dr Ray Trewin, 2009. "Poultry Sector Support and Protection, Structural Change and Disease Risk," International and Development Economics Working Papers idec09-01, International and Development Economics.
    7. Peter Warr & Arief Anshory Yusuf, 2014. "Fertilizer subsidies and food self-sufficiency in Indonesia," Agricultural Economics, International Association of Agricultural Economists, vol. 45(5), pages 571-588, September.
    8. Sadashivappa, Prakash & Qaim, Matin, 2009. "Effects of Bt Cotton in India During the First Five Years of Adoption," 2009 Conference, August 16-22, 2009, Beijing, China 49947, International Association of Agricultural Economists.
    9. Hadiprayitno Irene I., 2011. "Challenges Facing the Use of Human Rights to Address Negative Impacts of Development: The Case of Indonesia," The Law and Development Review, De Gruyter, vol. 4(1), pages 247-268, October.
    10. Dawe, David, 2009. "Cereal Price Transmission in Several Large Asian Countries during the Global Food Crisis," Asian Journal of Agriculture and Development, Southeast Asian Regional Center for Graduate Study and Research in Agriculture (SEARCA), vol. 6(1), pages 1-12, June.
    11. Peter Warr & Arief Anshory Yusuf, 2011. "Reducing Indonesia’s deforestation‐based greenhouse gas emissions," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 55(3), pages 297-321, July.
    12. Gomez-Barbero, Manuel & Rodgriguez-Cerezo, Emilio, 2005. "Estimate of the Potential Adoption of Genetically Modified Cotton by Farmers in Southern Spain and its Economic Implications," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24556, European Association of Agricultural Economists.
    13. Naseem, Anwar & Singla, Rohit, 2013. "Ex Ante Economic Impact Analysis of Novel Traits in Canola," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 38(2), pages 1-21, August.
    14. Barrett, Christopher B. & Swallow, Brent M., 2006. "Fractal poverty traps," World Development, Elsevier, vol. 34(1), pages 1-15, January.
    15. Peter Warr, 2008. "World food prices and poverty incidence in a food exporting country: a multihousehold general equilibrium analysis for Thailand," Agricultural Economics, International Association of Agricultural Economists, vol. 39(s1), pages 525-537, November.
    16. Falck-Zepeda, Jose & Horna, Daniela & Smale, Melinda, 2007. "The economic impact and the distribution of benefits and risk from the adoption of insect resistant (Bt) cotton in West Africa," IFPRI discussion papers 718, International Food Policy Research Institute (IFPRI).
    17. Anchal Arora & Sangeeta Bansal, "undated". "Diffusion of Bt Cotton in India: Impact of Seed Prices and Technological Development," Centre for International Trade and Development, Jawaharlal Nehru University, New Delhi Discussion Papers 11-01, Centre for International Trade and Development, Jawaharlal Nehru University, New Delhi, India.
    18. Ditya Agung Nurdianto, 2016. "Economic Impacts of a Carbon Tax in an Integrated ASEAN," EEPSEA Special and Technical Paper tp201604t5, Economy and Environment Program for Southeast Asia (EEPSEA), revised Apr 2016.
    19. Aksoy , M. Ataman & Isik-Dikmelik, Aylin, 2008. "Are low food prices pro-poor ? net food buyers and sellers in low-income countries," Policy Research Working Paper Series 4642, The World Bank.
    20. Sanglestsawai, Santi & Rodriguez, Divina Gracia P. & Rejesus, Roderick M. & Yorobe, Jose M., 2017. "Production Risk, Farmer Welfare, and Bt Corn in the Philippines," Agricultural and Resource Economics Review, Cambridge University Press, vol. 46(3), pages 507-528, December.

    More about this item

    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:bla:agecon:v:40:y:2009:i:4:p:477-492. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/iaaeeea.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.