WELFARE IMPLICATIONS OF INTRODUCING BIOTECH TRAITS IN A MARKET WITH SEGMENTS AND SEGREGATION COSTS: THE CASE OF ROUNDUP READY® WHEAT--SUMMARY

William Wilson, Eric DeVuyst, Won W. Koo, Richard D. Taylor and Bruce L. Dahl

No 23611, Agribusiness & Applied Economics Report from North Dakota State University, Department of Agribusiness and Applied Economics

Abstract: Roundup Ready® Wheat (RRW) was one of the first genetically modified (GM) traits for the wheat sector and was under review by regulatory agencies in the United States and Canada when Monsanto withdrew it from further consideration. There are a multitude of issues associated with the ex ante evaluation of this decision. These include market acceptance and segregation, as well as the varying sources of cost savings and productivity gains. In this article, we develop a spatial partial equilibrium model of the higher-protein hard wheat market and assess the changes in the distribution of welfare associated with release and adoption of RRW. It incorporates segments for GM aversion in each market and segregation costs for each segment. Major conclusions indicate that in the most likely scenario, producer welfare increases by $301 million and consumer welfare increases by $252 million. Producers of hard red spring (HRS) wheat in the United States and Canada win, while hard red winter (HRW) wheat growers lose.

Keywords: Crop; Production/Industries (search for similar items in EconPapers)
Pages: 7
Date: 2005
References: Add references at CitEc
Citations:

Downloads: (external link)
https://ageconsearch.umn.edu/record/23611/files/aer566s.pdf (application/pdf)

Related works:
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:ags:nddaae:23611

DOI: 10.22004/ag.econ.23611

Access Statistics for this paper

More papers in Agribusiness & Applied Economics Report from North Dakota State University, Department of Agribusiness and Applied Economics Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().