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Genetic improvements in major US crops: the size and distribution of benefits
Author(s) -
Frisvold George B.,
Sullivan John,
Raneses Anton
Publication year - 2003
Publication title -
agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.29
H-Index - 82
eISSN - 1574-0862
pISSN - 0169-5150
DOI - 10.1111/j.1574-0862.2003.tb00245.x
Subject(s) - economics , revenue , welfare , distribution (mathematics) , agriculture , agricultural economics , range (aeronautics) , developing country , natural resource economics , ecology , economic growth , biology , finance , mathematical analysis , materials science , mathematics , market economy , composite material
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).