Economic Impact of Commercial Application of Biotechnology on Selected Crops
Florkowski, Wojciech Jan
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https://hdl.handle.net/2142/69875
Description
Title
Economic Impact of Commercial Application of Biotechnology on Selected Crops
Author(s)
Florkowski, Wojciech Jan
Issue Date
1986
Department of Study
Agricultural Economics
Discipline
Agricultural Economics
Degree Granting Institution
University of Illinois at Urbana-Champaign
Degree Name
Ph.D.
Degree Level
Dissertation
Keyword(s)
Economics, Agricultural
Abstract
A small number of studies concerning the effects of agricultural biotechnology have been published. They provide a limited amount of information to potential investors allocating resources to different areas of biotechnology research. The lack of detailed analysis of biotechnology's impact on agriculture is, in part, due to the lack of information about when specific biotechnological advances will occur. Therefore a survey of scientists was conducted in order to predict when various agricultural biotechnologies will become available, the expected change in yield, the change in input use, and the patentability of the new technology.
The information gathered by the survey was used in specifying a price-endogenous linear programming model of the United States field crop sector. The objective function of the model maximized the total producer and consumer welfare, subject to the resource constraints. The resource constraints included the amount of land available in each land capability class in 10 agricultural production regions in the United States, commodity balances, and demand convexity constraints.
The benchmark model was validated by comparison with the 1982 actual as well as the long term levels of acreage harvested, output and price. It was then used for predicting the impact of the commercial application of the twelve technologies.
Solutions were obtained which predicted shifts in land allocation among regions, changes in quantities supplied, and changes in prices. The effect of each biotechnology on producer and consumer surplus varies but the net effect of each is always an increase in total welfare.
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