TY - JOUR
T1 - Genetic engineering and food security
T2 - A welfare economics perspective
AU - Lakkakula, Prithviraj
AU - Haynes, Dwayne J.
AU - Schmitz, Troy
PY - 2015
Y1 - 2015
N2 - Purpose - This chapter analyzes the economic implications of genetic engineering for food security. We discuss the asynchronous nature of genetically modified (GM) crop regulation and labeling requirements among countries, associated politics, and consumer perceptions of GMcrops. Methodology/approach - We perform an ex-ante analysis of the introduction of a GM rice variety in major rice exporting and importing countries (including potential producer and consumer impacts) within the framework of a partial equilibrium trade model. Findings - Although the introduction of a GM rice variety that increases global yield by 5% could result in a consumer gain of US$23.4 billion to US$74.8 billion, it could also result in a producer loss of US$9.7 billion to US$63.7 billion. The estimated net gain to society could be US$11.1 billion to US$13.7 billion. Overall, we find a positive economic surplus for major exporters and importers of rice based on a 5% supply increase with a GMrice variety. Practical implications - The adoption of transgenic (GM) rice varieties would have a far greater impact on rice prices for poorer counties than for richer countries. Therefore, GM rice may help ensure that more people throughout the world would have food security.
AB - Purpose - This chapter analyzes the economic implications of genetic engineering for food security. We discuss the asynchronous nature of genetically modified (GM) crop regulation and labeling requirements among countries, associated politics, and consumer perceptions of GMcrops. Methodology/approach - We perform an ex-ante analysis of the introduction of a GM rice variety in major rice exporting and importing countries (including potential producer and consumer impacts) within the framework of a partial equilibrium trade model. Findings - Although the introduction of a GM rice variety that increases global yield by 5% could result in a consumer gain of US$23.4 billion to US$74.8 billion, it could also result in a producer loss of US$9.7 billion to US$63.7 billion. The estimated net gain to society could be US$11.1 billion to US$13.7 billion. Overall, we find a positive economic surplus for major exporters and importers of rice based on a 5% supply increase with a GMrice variety. Practical implications - The adoption of transgenic (GM) rice varieties would have a far greater impact on rice prices for poorer counties than for richer countries. Therefore, GM rice may help ensure that more people throughout the world would have food security.
KW - Genetically modified crops
KW - GMOs
KW - Transgenic rice
KW - Welfare economics
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U2 - 10.1108/S1574-871520150000015020
DO - 10.1108/S1574-871520150000015020
M3 - Article
AN - SCOPUS:84951032333
SN - 1574-8715
VL - 15
SP - 179
EP - 193
JO - Frontiers of Economics and Globalization
JF - Frontiers of Economics and Globalization
ER -