Genetically Modified Crops and Product Differentiation: Trade and Welfare Effects in the Soybean Complex
نویسندگان
چکیده
A partial equilibrium four-region world trade model for the soybean complex is developed in which Roundup Ready (RR) products are weakly inferior substitutes to conventional ones, RR seeds are priced at a premium, and costly segregation is necessary to separate conventional and biotech products. Solution of the calibrated model illustrates how incomplete adoption of RR technology arises in equilibrium. The United States, Argentina, Brazil and the Rest of the World (ROW) all gain from the introduction of RR soybeans, although some groups may lose. The impacts of RR production or import bans by the ROW or Brazil are analyzed. U.S. price support helps U.S. farmers, despite hurting the United States, and has the potential to improve world efficiency. Final version: October 2004 American Journal of Agricultural Economics, 2005 (in press). Andrei Sobolevsky (Ph.D.) is a manager at Sprint, Overland Park, Kansas. GianCarlo Moschini is a professor and Pioneer Hi-Bred Endowed Chair in Science and Technology Policy, Department of Economics and the Center for Agricultural and Rural Development, Iowa State University. Harvey Lapan is a University Professor, Department of Economics, Iowa State University. The support of the U.S. Department of Agriculture, through a one-year cooperative agreement and through a National Research Initiative grant, is gratefully acknowledged.
منابع مشابه
Genetically Modified Crop Innovations and Product Differentiation: Trade and Welfare Effects in the Soybean Complex
We develop a new partial equilibrium, four-region world trade model for the soybean complex comprising soybeans, soybean oil, and soybean meal. In the model, some consumers view genetically modified Roundup Ready (RR) soybeans and products as weakly inferior to conventional ones; the RR seed is patented and sold worldwide by a U.S. firm; and producers employ a costly segregation technology to s...
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