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

Stéphan Marette (), Anne-Célia Disdier, Anastasia Bodnar and John Beghin ()
Additional contact information
Anastasia Bodnar: USDA - United States Department of Agriculture

PSE Working Papers from HAL

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.

Keywords: New plant engineering techniques (NPETs); Genome editing (GenEd); Trade; Willingness to pay (WTP); Food innovation; Industrial organization; Apple; Nontariff measure (NTM) (search for similar items in EconPapers)
Date: 2021-09
New Economics Papers: this item is included in nep-int
Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-03359622v1
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://shs.hal.science/halshs-03359622v1/document (application/pdf)

Related works:
Journal Article: New plant engineering techniques, R&D investment and international trade (2023)
Working Paper: New Plant Engineering Techniques, R&D Investment, and International Trade (2022)
Working Paper: New Plant Engineering Techniques, R&D Investment, and International Trade (2021)
Working Paper: New Plant Engineering Techniques, R&D Investment, and International Trade (2021)
Working Paper: New Plant Engineering Techniques, R&D Investment, and International Trade (2021)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hal:psewpa:halshs-03359622

Access Statistics for this paper

More papers in PSE Working Papers from HAL
Bibliographic data for series maintained by CCSD ().