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Rejecting New Technology: The Case of Genetically Modified Wheat
Author(s) -
Berwald Derek,
Carter Colin A.,
Gruère Guillaume P.
Publication year - 2006
Publication title -
american journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.949
H-Index - 111
eISSN - 1467-8276
pISSN - 0002-9092
DOI - 10.1111/j.1467-8276.2006.00869.x
Subject(s) - economic rent , agricultural economics , genetically engineered , veto , genetically modified organism , economics , business , agricultural science , microbiology and biotechnology , political science , market economy , biology , law , biochemistry , politics , gene
Canada has stringent regulations covering the release of new wheat varieties, but the United States has virtually no regulations in this area. Monsanto Co. developed genetically modified (GM) spring wheat for North America, and made a commitment to the U.S. industry to release this new technology simultaneously in both Canada and the United States, or not at all. The Canadian regulatory bias against new varieties acted as a veto against GM wheat and caused Monsanto to shelve the technology in both countries in 2004. Substantial economic rents were foregone in North America due to the rejection of this new technology.