Genetic improvements in major US crops: the size and distribution of benefits

The distribution of welfare gains of genetic improvements in major US crops is estimated using a world agricultural trade model. Multi-market welfare estimates were 75% larger than estimates based on the price-exogenous ‘change in revenue’ method frequently used by plant breeders. Annual benefits of...

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Bibliographic Details
Published in:Agricultural economics 2003-03, Vol.28 (2), p.109-119
Main Authors: Frisvold, George B, Sullivan, John, Raneses, Anton
Format: Article
Language:English
Subjects:
Genetic resources
Plant breeding
Returns to research
Supply shift
Yields
Online Access:Get full text
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Summary:The distribution of welfare gains of genetic improvements in major US crops is estimated using a world agricultural trade model. Multi-market welfare estimates were 75% larger than estimates based on the price-exogenous ‘change in revenue’ method frequently used by plant breeders. Annual benefits of these genetic improvements range from US$ 400–600 million depending on the supply shift specification. Of this, 44–60% accrues to the US, 24–34% accrues to other developed countries. Developing and transitional economies capture 16–22% of the welfare gain. The global benefits of a one-time permanent increase in US yields are US$ 8.1 billion (discounted at 10%) and US$ 15.4 billion (discounted at 5%). Gains to consumers in developing and transitional economies range from US$ 6.1 billion (10% discount rate) to US$ 11.6 billion (5% discount rate).
ISSN:0169-5150
1574-0862
DOI:10.1016/S0169-5150(02)00100-7