TRANSGENIC CROPS AND THE ENVIRONMENT: MISSING MARKETS AND PUBLIC ROLE

The rapidity of change has left scant opportunity for investigation of the consequences of biotechnology adoption on long-term ecosystem or economic system functioning. Economic theory suggests that, if the "Biotechnology Revolution" is left to market forces alone,there will be neglected public goods. Theory and limited empirical evidence suggests that there are significant incentives for private firms to discount and neglect certain environmental impacts and to develop products that meet only the needs of those able and willing to pay. Negative distributional impacts on rural societies and economies will not normally enter the private calculus nor will the long-term problems of insect and plant resistance. Thus, there is a strong case for enhanced public roles with respect to the use of transgenic crops. The adoption of the precautionary approach in public policies addressing transgenic crops is one alternative to better reflect public concerns.Environmental Economics and Policy, Research and Development/Tech Change/Emerging Technologies,

ECONOMICS IN THE DESIGN, ASSESSMENT, ADOPTION, AND POLICY ANALYSIS OF I.P.M.

During the past twenty years, economics has played a key role in technology assessment and policy analysis related to integrated pest management (IPM) practices. The paper reviews economic analysis of IPM as applied to evaluating expected profitability, ex ante and ex post adoption, social welfare impacts, returns to research, and policies that affect pest management generally. In specific cases, economic methods have contributed significantly to the development of threshold-based IPM decision support software. Two areas that need greater economic input are assessment of biological pest management practices and the measurement of returns to research in IPM.Crop Production/Industries,

Agriculture's Role in Greenhouse Gas Mitigation

Examines technical, economic, and policy trends. Explores efforts to encourage farmers to adopt new agricultural practices that reduce agricultural greenhouse gas emissions. Reviews biofuel options, and related policy implications

Climate Resilient & Equitable Water Systems Capital Scan

Climate change is affecting water supply, water management and the health of communities in U.S. cities. Changes in the timing, frequency and intensity of precipitation are placing stress on the built and natural systems that provide fresh water, manage storm water, and treat wastewater. Droughts are shrinking the water supply; heavy rainfall overburdens storm water systems, causing flooding in homes and neighborhoods. Low-income people and communities of color are often the most vulnerable to climate change, living in low-lying areas and lacking the resources to adapt and cope with challenges associated with these patterns.The cumulative impact of climate change on water resources not only leads to a reduction in water quality and the destruction of homes and property, but it can also be a threat to public health, force relocation of communities and cause economic harm.The vision of Kresge's Environment Program is to help communities build resilience in the face of climate change. We believe that cities are central to action on climate change and equity must be a fundamental part of our work in climate adaptation, climate mitigation and building social cohesion

Towards a Sustainable Future: The Dynamic Adjustment Path of Irrigation Technology and Water Management in Western U.S. Agriculture

Technology adoption, Water conservation, Irrigation, Dynamic groundwater models, Sustainable agriculture, Environmental Economics and Policy, Resource /Energy Economics and Policy,

Radiative Forcing: Climate Policy to Break the Logjam in Environmental Law

This article recommends the key design elements of US climate law. Much past environmental law has suffered from four design problems: fragmentation, insensitivity to tradeoffs, rigid prescriptive commands, and mismatched scale. These are problems with the design of regulatory systems, not a rejection of the overall objective of environmental law to protect ecosystems and human health. These four design defects raised the costs, reduced the benefits, and increased the countervailing risks of many past environmental laws. The principal environmental laws successfully enacted since the 1990s, such as the acid rain trading program in the 1990 Clean Air Act (CAA) Amendments and the 1996 Safe Drinking Water Act amendments, were consciously designed to overcome the prior design defects. New law for climate change should improve on the design of past environmental law, fostering four counterpart solutions to the prior design defects: cross-cutting integration instead of fragmentation, attention to tradeoffs instead of their neglect, flexible incentive-based policy instruments such as emissions trading in place of rigid prescriptive commands, and optimal instead of mismatched scale. This article advocates a design for U.S. climate policy that embodies these four design solutions. It proposes a policy that is comprehensive in its coverage of multiple pollutants (all GHGs), their sources and sinks; multiple sectors (indeed economy-wide); and multiple issues currently divided among separate agencies. It advocates explicit attention to tradeoffs, both benefit-cost and risk-risk (including both ancillary harms and ancillary benefits), in setting the goals and boundaries of climate policy. It advocates the use of flexible market-based incentives through an efficient cap-and-trade system, with most allowances auctioned along multi-year emissions reduction schedules that are reviewed periodically in light of new information. And it advocates matching the legal regime to the environmental and economic scale of the climate problem, starting at the global level, engaging all the major emitting countries (including the U.S. and China), and then implementing at the national and sub-national levels rather than a patchwork bottom-up approach. In so doing it addresses the roles of EPA regulation under the current CAA and of new legislation. It argues that among environmental issues, climate change is ideally suited to adopt these improved policy design features

Parables: applied economics literature about the impact of genetically engineered crop varieties in developing economies

"A vast literature has accumulated since crop varieties with transgenic resistance to insects and herbicide tolerance were released to farmers in 1996 and 1997. A comparatively minor segment of this literature consists of studies conducted by agricultural economists to measure the farm-level impact of transgenic crop varieties, the size and distribution of the economic benefits from adopting them, consumer attitudes toward GE products, and implications for international trade. This paper focuses only on the applied economics literature about the impact of transgenic crop varieties in non-industrialized agricultural systems, with an emphasis on methods. A number of studies have surveyed the findings for both industrialized and non-industrialized agriculture, at various points in time, but surveys of methods are less frequent and have typically examined only one overall question or approach. Clearly, the methods used in research influence the findings that are presented and what they mean. Understanding the methods therefore enhances understanding of the findings. Four categories of impact analysis are considered: farmers, consumers, industry and trade. In part due to methodological limitations and the relatively brief time frame of most analyses, results are promising, but the balance sheet is mixed. Thus, findings of current case studies should not be generalized to other locations, crops, and traits. The aim of this review is to progress toward the defining a “best practices” methodology for national researchers who seek to produce relevant information about emerging crop biotechnologies for national policymakers. " Authors' AbstractGenetically engineered crops, Economic impacts, Technology adoption, Developing economies, Economics methods, Best practices, biotechnology,

ADOPTION OF BIOENGINEERED CROPS

Use of crop biotechnology products, such as genetically engineered (GE) crops with input traits for pest management, has risen dramatically since commercial approval in the mid-1990s. This report addresses several of the economic dimensions regarding farmer adoption of bioengineered crops, including herbicidetolerant and insect-resistant varieties. In particular, the report examines: (1) the extent of adoption of bioengineered crops, their diffusion path, and expected adoption rates over the next few years; (2) factors affecting the adoption of bioengineered crops; and (3) farm-level impacts of the adoption of bioengineered crops. Data used in the analysis are mostly from USDA surveys.Biotechnology, technology adoption, genetic engineering, pest management, financial effects, tillage, herbicide-tolerant crops, Bt crops, corn, soybeans, cotton, Crop Production/Industries, Research and Development/Tech Change/Emerging Technologies,

PRODUCTION AND FINANCIAL IMPACTS OF THE ADOPTION OF BOVINE SOMATOTROPIN ON U.S. DAIRY FARMS

Production and financial impacts of recombinant bovine somatotropin (rbST) adoption are assessed using a survey of U.S. dairy operations and a model that corrects for self-selection bias. A substantial increase in milk production per cow is associated with rbST adoption, but large estimated financial impacts are not statistically significant. Substantial variation in the net returns of rbST adopters may be related to the management-intensive nature of rbST.Livestock Production/Industries,

THE IMPACT OF GOVERNMENT POLICIES ON AGRICULTURAL PRODUCTIVITY AND STRUCTURE: PRELIMINARY RESULTS

Our paper begins with a consideration of the causal relationships among productivity, farm structure, government farm payments and public investments in research and extension. We then empirically test key relationships for a relatively recent period (1960-96) in the history of agricultural structural adjustment using a simultaneous equations econometric model. Future work will expand and refine the measurement of variables thought to explain the relationship between productivity and structure.Agricultural and Food Policy, Productivity Analysis,