Implications of Biotech Traits with Segregation Costs and Market Segments: The Case of Roundup Ready® Wheat

Posted: 26 Jun 2008

See all articles by William W. Wilson

William W. Wilson

North Dakota State University

Eric A. DeVuyst

Oklahoma State University

Won W. Koo

North Dakota State University

Bruce L. Dahl

North Dakota State University - Department of Agribusiness and Applied Economics

Date Written: March 2008

Abstract

Roundup Ready® Wheat (RRW) is one of the first genetically modified (GM) traits for the wheat sector. 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. In the most likely scenario, producer and consumer welfare increases by $301 and $252 million, respectively. Producers of hard red spring wheat in the US and Canada gain. There are welfare losses to hard red winter wheat growers in the US and to EU consumers who have to import at a higher cost.

Keywords: genetically modified wheat, welfare analysis, spatial market model, Q13, Q17

Suggested Citation

Wilson, William W. and DeVuyst, Eric A. and Koo, Won W. and Dahl, Bruce L., Implications of Biotech Traits with Segregation Costs and Market Segments: The Case of Roundup Ready® Wheat (March 2008). European Review of Agricultural Economics, Vol. 35, No. 1, pp. 51-73, 2008, Available at SSRN: https://ssrn.com/abstract=1151636 or http://dx.doi.org/jbn003

William W. Wilson (Contact Author)

North Dakota State University ( email )

Morrill 221F
Fargo, ND 58105
United States
701-231-7472 (Phone)
701-231-7400 (Fax)

Eric A. DeVuyst

Oklahoma State University

Won W. Koo

North Dakota State University ( email )

Morrill 209B
Fargo, ND 58105
United States
701-231-7448 (Phone)
701-231-7400 (Fax)

Bruce L. Dahl

North Dakota State University - Department of Agribusiness and Applied Economics ( email )

PO Box 5636
Fargo, ND 58105
United States
(701) 231-8001 (Phone)
(701) 231-7400 (Fax)

HOME PAGE: http://www.ext.nodak.edu/~aedept/staff/dahl_b.htm

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