Biotechnology in Agriculture and Forestry: Economic Perspectives

Economists are rarely brought into the interdisciplinary research until the biophysical scientists have developed their models, made their measurements or completed their research task. The research economist is then brought in to do what amounts to a consulting task – provide some numbers that indicate impacts on the economy and employment. In this paper, I begin by illustrating cases from forestry where this leads to erroneous and costly policy outcomes. However, the main objective of this paper is to examine the role of genetic engineering in forestry and agriculture. In forestry, planting of genetically-modified (GM) tree species is nearly non-existent, with the exception of hybrid poplar that is used to produce pulp or fuel. However, as explored here, there is a role for GM tree varieties, particularly ones that are resistant to such things as the mountain pine beetle which has adversely impacted forests in British Columbia. I also examine the role of GM crops in addressing concerns about future food scarcity. As discussed here, there are various factors that suggest the world might encounter future scarcity. These include on the demand side a growing and wealthier global population, and greater demand for energy crops. On the supply side, there are fewer opportunities to expand farmland at the extensive margin, a decline in the rate of increase in productivity, limits to the amounts of inputs that can be applied at the intensive margin, and the closing of the gap between actual and potential crop yield. GM crops are one way to circumvent the potential shortages. However, there are many obstacles that need to be overcome before farmers globally can take advantage of transgenic research, including most importantly barriers put up by the European Union and various environmental NGOs on the grounds of the precautionary principle. These are discussed in some detail.precautionary principle; economics of genetically-modified organisms; agriculture and forestry; mountain pine beetle

Land use not litter quality is a stronger driver of decomposition in hyperdiverse tropical forest

Funded by Natural Environment Research Council. Grant Number: NE/K016253/1Peer reviewedPublisher PD

HUMAN RESOURCES AND UNDERGRADUATE AGRICULTURAL ECONOMICS: A PRELIMINARY REPORT

This paper focuses on determining the core of undergraduate human resource economics and evaluating the coverage of these topics in undergraduate agricultural economics texts and curricula. We include survey results which provide information on undergraduate students' exposure to and their preparation regarding human resource issues in their chosen careers.Teaching/Communication/Extension/Profession,

A theoretical and empirical investigation of nutritional label use

Due in part to increasing diet-related health problems caused, among others, by obesity, nutritional labelling has been considered important, mainly because it can provide consumers with information that can be used to make informed and healthier food choices. Several studies have focused on the empirical perspective of nutritional label use. None of these studies, however, have focused on developing a theoretical economic model that would adequately describe nutritional label use based on a utility theoretic framework. We attempt to fill this void by developing a simple theoretical model of nutritional label use, incorporating the time a consumer spends reading labels as part of the food choice process. The demand equations of the model are then empirically tested. Results suggest the significant role of several variables that flow directly from the model which, to our knowledge, have not been used in any previous empirical work

Recent and Prospective Adoption of Genetically Modified Cotton: A Global CGE Analysis of Economic Impacts

This paper provides estimates of the economic impact of initial adoption of genetically modified (GM) cotton and of its potential impacts beyond the few countries where it is currently common. Use is made of the latest version of the GTAP database and model. Our results suggest that by following the lead of China, South Africa and most recently India, adoption of GM cotton varieties by other developing countries – especially in Sub-Saharan Africa – could provide even larger proportionate gains to farmer and national welfare than in those early-adopting countries. Furthermore, those estimated gains are shown to exceed – and reinforce – those from a successful campaign under the WTO’s Doha Development Agenda to reduce/remove cotton subsidies and import tariffs globally.GMOs, cotton biotechnology, computable general equilibrium modeling, economic welfare, subsidy and tariff reform

THE IMPACTS OF U.S. COTTON PROGRAMS ON THE WEST AND CENTRAL AFRICAN COUNTRIES COTTON EXPORT EARNINGS

This study uses a stochastic simulation approach based on a partial equilibrium structural econometric model of the world fiber market to examine the effects of a removal of U.S. cotton programs on the world market. The effects on world cotton prices and African export earnings were analyzed. The results suggest that on average an elimination of U.S. cotton programs would lead to a marginal increase in the world cotton prices thus resulting in minimal gain for cotton exporting countries in Africa.Stochastic simulation, partial equilibrium model, United States, Africa, cotton subsidies, export earnings, Agricultural and Food Policy, Crop Production/Industries, Q11, Q17,

HEALTH KNOWLEDGE AND CONSUMER USE OF NUTRITIONAL LABELS: THE ISSUE REVISITED

The role of health knowledge in consumer use of nutritional labels on food packages is explored using data from the 1995 Diet and Health Knowledge Survey. Two types of label use models, a binary choice label use model and a level of label use model, are employed with particular attention given to the endogeneity of health knowledge. The binary choice model is concerned with factors affecting the probability of label use. The level of label use model deals with factors affecting the number of food products in which label use occurred. The results show that health knowledge has a significant role in increasing label use.Food Consumption/Nutrition/Food Safety,

What should economists measure? The implications of mass production vs. mass customization

Consumer behavior ; Production (Economic theory) ; Productivity