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UNCERTAINTIES OF ESTIMATING THE WELFARE EFFECTS OF AGRICULTURAL BIOTECHNOLOGY IN THE EUROPEAN UNION AgEcon
Demont, Matty; Tollens, Eric.
In literature, impact estimates of agricultural biotechnology vary strongly according to the region, the crop, the year, the scale, and the methodology of the study. Therefore, this paper provides a methodological background for analysing, interpreting, and comparing these estimates. All possible uncertainties entailed in the estimation procedure are reviewed as well as a methodology to incorporate them into a stochastic simulation model. This procedure can be used to assess the welfare effects of agricultural biotechnology in the European Union.
Tipo: Working or Discussion Paper Palavras-chave: Research and Development/Tech Change/Emerging Technologies.
Ano: 2001 URL: http://purl.umn.edu/31828
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Modelling heterogeneity to estimate the ex ante value of biotechnology innovations AgEcon
Dillen, Koen; Demont, Matty; Tollens, Eric.
After more than a decade of GM crops, literature reports farmers and consumers can gain significantly from the technology, despite the intellectual property rights assigned to the innovator. In this paper we assess the effect of heterogeneity on this distribution of benefits. A two dimensional framework is created to assess the ex ante benefits of an innovation. Given this setting and the scarce data often available, a parametric modelling approach is taken. The two dimensions of heterogeneity, spatial and temporal, are explicitly modelled as they have a different importance for different technologies. Using this framework we can simulate different corporate pricing strategies and evaluate the benefits generated under changing heterogeneity. The framework...
Tipo: Conference Paper or Presentation Palavras-chave: Heterogeneity; Parametric modelling; Ex ante; Research and Development/Tech Change/Emerging Technologies.
Ano: 2008 URL: http://purl.umn.edu/43945
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BEDRIJFSECONOMISCHE IMPACT VAN BIOTECHNOLOGIE IN DE BELGISCHE SUIKERBIETENTEELT AgEcon
de Venter, Katrien; Demont, Matty; Tollens, Eric.
Through Monte Carlo simulation techniques, all possible scenarios are analyzed of the impact of the potential adoption of genetically modified herbicide tolerant sugar beets on the economics of Belgian sugar beet growers. The most likely gain for the average Belgian sugar beet grower amounts to €125 /ha. Assuming an adoption rate of 75%, this transates into a total benefit foregone of €9 million for Belgian agriculture in the agricultural season 1998-1999. Three quarters of this benefit are absorbed by the farmers, while one quarter, i.e. €3 million, is extracted by the gene developers and seed suppliers. This refutes the argument of a seed industry extracting all benefits from biotechnology innovations.
Tipo: Working or Discussion Paper Palavras-chave: Production Economics; Research and Development/Tech Change/Emerging Technologies.
Ano: 2002 URL: http://purl.umn.edu/31847
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EX-ANTE EVALUATION OF THE ECONOMIC IMPACT OF AGRICULTURAL BIOTECHNOLOGY IN THE EUROPEAN UNION: THE CASE OF TRANSGENIC SUGARBEETS AgEcon
Demont, Matty; Tollens, Eric.
We develop a theoretical welfare framework, which explicitly recognizes that research protected by intellectual property rights generates monopoly profits. The result is a simulation model, shaped to the European sugar sector, and enabling to assess the size and distribution of the benefits of transgenic sugarbeet adoption in the European Union and the Rest of the World.
Tipo: Conference Paper or Presentation Palavras-chave: Crop Production/Industries; Research and Development/Tech Change/Emerging Technologies.
Ano: 2001 URL: http://purl.umn.edu/20631
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ETUDE COMPARATIVE DES SYSTEMES DE COMMERCIALISATION D'IGNAME EN COTE-D'IVOIRE, AU BENIN ET AU NIGERIA AgEcon
Demont, Matty; Houedjoklounon, Alexandre; Hounhouigan, Joseph; Mahyao, Adolphe; Orkwor, Gabriel; Stessens, Johan; Tollens, Eric; Toure, Moustapha.
The present study which started in 1999 is framed in the INCOYAM project. Marketing systems of yam are analyzed in three West- African countries: Cote d'Ivoire, Benin and Nigeria. Surveys have been carried out on urban (wholesales and retailers) and rural (collectors) traders. Cities and production regions have been selected in function of their socio-economic characteristics. As a result, in the three countries data has been collected in an important consumption pole, a commercial redistribution pole and a production pole. The degree of precision of the data varies from one country to another due to asymmetric financing. This situation did not allow establishing an equilibrated comparison of yam marketing systems. The three countries commercialize...
Tipo: Working or Discussion Paper Palavras-chave: Industrial Organization; Marketing.
Ano: 2003 URL: http://purl.umn.edu/31861
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AGROBIOTECHNOLOGY IN DEVELOPING COUNTRIES: NORTH-SOUTH PARTNERSHIPS ARE A KEY AgEcon
Tollens, Eric; Demont, Matty; Swennen, Rony.
Agricultural production almost needs to double in the 21st century, putting tremendous pressure on agricultural resources. Most food production increases must come from more agricultural intensification in the South. This advances the need for a new green revolution: higher productivity and at the same time less pressure on the environment. Agrobiotechnology can contribute to this double green revolution. Biotechnology innovations are often scale neutral and are therefore suitable for small farmers. Moreover, genetic modification offers especially advantages for crops domesticated since a very long time and which are therefore quite different from their wild relatives. However, agrobiotechnology also engenders risks and dangers, outlined in the...
Tipo: Working or Discussion Paper Palavras-chave: Research and Development/Tech Change/Emerging Technologies.
Ano: 2003 URL: http://purl.umn.edu/31837
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BIOTECH IN DEVELOPING COUNTRIES: FROM A GENE REVOLUTION TO A DOUBLY GREEN REVOLUTION? AgEcon
Tollens, Eric; Demont, Matty.
Tipo: Working or Discussion Paper Palavras-chave: International Development; Research and Development/Tech Change/Emerging Technologies.
Ano: 2002 URL: http://purl.umn.edu/31849
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ECONOMIC IMPACT OF AGRICULTURAL BIOTECHNOLOGY IN THE EU: THE EUWAB PROJECT AgEcon
Demont, Matty; Tollens, Eric.
Since 1995, genetically modified organisms (GMOs) have been introduced commercially into US agriculture. These innovations are developed and commercialised by a handful of vertically coordinated “"life science”" firms who have fundamentally altered the structure of the seed industry. Enforcement of intellectual property rights (IPRs) for biological innovations has been the major incentive for a concentration tendency in the upstream sector. On the one hand, this monopolisation may increase long-run social welfare through an increased rate of investment in R&D. On the other hand, due to their monopoly power, these firms are capable of charging a “"monopoly rent”", extracting a part of the total social welfare. A popular argument used by the...
Tipo: Working or Discussion Paper Palavras-chave: Research and Development/Tech Change/Emerging Technologies.
Ano: 2001 URL: http://purl.umn.edu/31857
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THE ECONOMICS OF AGRICULTURAL BIOTECHNOLOGY: HISTORICAL AND ANALYTICAL FRAMEWORK AgEcon
Demont, Matty; Tollens, Eric.
In this working paper we attempt to establish a general analytical framework for the calculation of the micro- and macroeconomic benefits and costs of biotechnology applications in EU agriculture. Since these innovative applications are typically protected by intellectual property rights, standard welfare analyses will overestimate total benefits generated by these innovations. On the other hand, this doesn'’t mean that innovators are extracting all of the benefits. A recent ex-post welfare analysis on US Bt-cotton shows that farmers have captured the largest share of benefits (Falck-Zepeda, Traxler and Nelson, 1999). Due to the importance of intellectual property rights and the consolidation of the agricultural input industry, the framework presented...
Tipo: Working or Discussion Paper Palavras-chave: Research and Development/Tech Change/Emerging Technologies.
Ano: 1999 URL: http://purl.umn.edu/31845
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BOSERUP VERSUS MALTHUS REVISITES: EVOLUTION DES EXPLOITATIONS AGRICOLES DANS LE NORD DE LA COTE D'IVOIRE AgEcon
Demont, Matty; Jouve, Philippe; Stessens, Johan; Tollens, Eric.
The literature on the evolution of farming systems in West Africa shows a large diversity of general theories on rural development. The purpose of this study is to revisit the theses of Malthus and Boserup and empirically test them on a case study of Northern Cote d’'Ivoire. We have at our disposal a database spread over three agricultural seasons (1995-1998) and three villages. These villages differ strongly regarding their population density and historical genesis. The comparison between these villages permitted to track down their stage in the evolution of farming systems and to identify population pressure as a key factor of the evolution of farming systems and to identify population pressure as a key factor of the evolution process of farms. Our...
Tipo: Working or Discussion Paper Palavras-chave: Community/Rural/Urban Development.
Ano: 2004 URL: http://purl.umn.edu/31838
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The Global Welfare Effects of GM Sugar Beet under Changing Sugar Policies AgEcon
Dillen, Koen; Demont, Matty; Tollens, Eric.
Since most of the recent agricultural biotechnology innovations have been developed by private companies, the central focus of societal interest is on the distribution of the gains from these technologies among all stakeholders. In a partial equilibrium model, assuming perfect corporate pricing strategies given the heterogeneous population of potential adopters, we model the worldwide introduction of GM sugar beet. The introduction is modelled under both the old and new CMO for sugar in the EU. We see GM sugar beet could bring great benefits to both consumers in the world and sugar beet producers even when the innovation is protected by intellectual property rights and the innovator uses his restricted monopoly to the full extend.
Tipo: Conference Paper or Presentation Palavras-chave: GM; Sugar beet; Partial equilibrium; Agricultural and Food Policy; Crop Production/Industries.
Ano: 2008 URL: http://purl.umn.edu/43944
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BIODIVERSITY VERSUS TRANSGENIC SUGAR BEET: THE ONE EURO QUESTION AgEcon
Demont, Matty; Wesseler, Justus; Tollens, Eric.
The decision of whether to release transgenic crops in the EU is one subject to flexibility, uncertainty, and irreversibility. We analyse the case of herbicide tolerant sugar beet and reassess whether the 1998 de facto moratorium of the EU on transgenic crops for sugar beet was correct from a cost-benefit perspective using a real option approach. We show that the decision was correct, if households value possible annual irreversible costs of herbicide tolerant sugar beet with about 1 E or more on average. On the other hand, the total net private reversible benefits forgone if the de facto moratorium is not lifted are in the order of 169 Mio E per year.
Tipo: Working or Discussion Paper Palavras-chave: Research and Development/Tech Change/Emerging Technologies.
Ano: 2002 URL: http://purl.umn.edu/31859
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Global welfare effects of transgenic sugar beet AgEcon
Dillen, Koen; Demont, Matty; Tollens, Eric.
Although the EU is still in a quasi moratorium stage concerning GM crops, doors for GM crops in the sugar industry seem to open. Herbicide tolerant sugar beet could mean a boost for the sugar beet sector. The ex ante impact assessment shows a created welfare of €15 billion during 1996-2014. The rule of thumb found in ex post impact studies of a sharing out between downstream and upstream sector of 2/3 versus 1/3 is seems to be applicable to this case as well. The sugar beet sector and consumers worldwide are the winners while cane growers lose due to technology eroded world prices. The reform of the EU Common market organization for sugar in 2006 seems to create an incentive for innovation to efficient European sugar producers. Crowding out of inefficient...
Tipo: Conference Paper or Presentation Palavras-chave: Crop Production/Industries; Research and Development/Tech Change/Emerging Technologies.
Ano: 2007 URL: http://purl.umn.edu/9783
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BIOLOGISCHE, BIOTECHNOLOGISCHE EN GANGBARE LANDBOUW: EEN VERGELIJKENDE ECONOMISCHE STUDIE AgEcon
Demont, Matty; Tollens, Eric.
Crop protection is a part of the agricultural production system. In Europe during the past century, this system has been subject to innovation, stemming from the second agricultural revolution of the Modern Time. Today we are on the crossroad of three alternative agricultural systems. Conventional agriculture is the product of the second agricultural revolution. So far, biotechnological agriculture seems to continue these trends. Organic agriculture on the other hand is a reaction on the paradigm of the second agricultural revolution, especially regarding the negative environmental externalities engendered by this revolution. Today, conventional agriculture is under pressure. Two alternatives have emerged: organic and biotechnological agriculture. Which...
Tipo: Working or Discussion Paper Palavras-chave: Production Economics; Research and Development/Tech Change/Emerging Technologies.
Ano: 2000 URL: http://purl.umn.edu/31839
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Are EU spatial ex ante coexistence regulations proportional? AgEcon
Demont, Matty; Daems, W.; Dillen, Koen; Mathijs, Erik; Sausse, C.; Tollens, Eric.
The EU is currently struggling to implement coherent coexistence regulations on genetically modified (GM) and non-GM crops in all member states. While it stresses that any approach needs to be “proportionate to the aim of achieving coexistence”, very few studies have actually attempted to assess whether the proposed spatial ex ante coexistence regulations (SEACERs) satisfy this proportionality condition. In this article, we define proportionality as a functional relationship which is weakly increasing in the incentives for coexistence. We propose a spatial framework based on an existing landscape and introduce the new concept of shadow factor as a measure for the opportunity costs induced by SEACERs. This enables comparing the proportionality of (i) rigid...
Tipo: Conference Paper or Presentation Palavras-chave: Policy analysis; GIS; Shadow factor; Agricultural and Food Policy; Crop Production/Industries.
Ano: 2008 URL: http://purl.umn.edu/44191
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EVOLUTION DES SYSTEMES AGRAIRES DANS LE NORD DE LA COTE D'IVOIRE: LES DEBATS, BOSERUP VERSUS MALTHUS, ET COMPETITION VERSUS COMPLEMENTARITE, REVISITES AgEcon
Demont, Matty; Jouve, Philippe; Stessens, Johan; Tollens, Eric.
A socio-economic analysis of the farms in four villages of the Dikodougou region (North of Cote d’'Ivoire) reviews two debates about the evolution of the farming systems in sub-Saharan Africa. Firstly, the two opposing views in the controversy “"Boserup versus Malthus"” are complements rather than opposites. In a first phase, demographic pressure causes Malthusian mechanisms (proliferation of weeds, deterioration of the bio-physical environment, of global fertility and of the profitability of the traditional production system) generating favourable conditions for the adoption of ox-drawn farming. In a second phase, the alternation of the production system illustrates well the Boserupian response to a situation where the traditional system is not adapted...
Tipo: Working or Discussion Paper Palavras-chave: Community/Rural/Urban Development; Production Economics.
Ano: 1999 URL: http://purl.umn.edu/31833
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THE EVOLUTION OF FARMING SYSTEMS IN NORTHERN COTE D'IVOIRE: BOSERUP VERSUS MALTHUS AND COMPETITION VERSUS COMPLEMENTARITY AgEcon
Demont, Matty; Jouve, Philippe; Stessens, Johan; Tollens, Eric.
A socio-economic analysis of a sample of farms in Northern Côte d'Ivoire revisits two debates about the evolution of farming systems in sub-Saharan Africa. Taking into account the diversity of farming systems, the debates "Boserup vs. Malthus" and "competition vs. complementarity" between cotton and food crops become better informed and less straightforward.
Tipo: Conference Paper or Presentation Palavras-chave: International Development.
Ano: 2000 URL: http://purl.umn.edu/21865
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Adoption and impact of an award winning post-harvest technology: The ASI rice thresher in the Senegal River Valley AgEcon
Diagne, Mandiaye; Demont, Matty; Diagne, Aliou.
In Senegal, one of the highest rice import-dependent countries in Sub-Saharian Africa, double cropping is recommended in the new national program for the Great Offensive for Food and Abundance (GOANA) to boost rice production. This target impels the respect of cropping calendar by using improved technologies like the ASI thresher-cleaner. The causal or treatment effect framework (ATE and LATE) is used to estimate the ASI adoption rate and impact. The results show that the true ASI adoption rate would be 86 % if all the population of irrigated rice farmers were exposed to it. The socioeconomic characteristics that increase the probability to adopt the ASI thresher are farmer experience, farm size, and participation to ASI field experiments and/or contact...
Tipo: Conference Paper or Presentation Palavras-chave: Adoption; Impact; ATE; LATE; Senegal River Valley; ASI thresher; Agricultural and Food Policy; Production Economics; Research and Development/Tech Change/Emerging Technologies.
Ano: 2009 URL: http://purl.umn.edu/50323
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IMPACT OF BIOTECHNOLOGY IN EUROPE: THE FIRST FOUR YEARS OF BT MAIZE ADOPTION IN SPAIN AgEcon
Demont, Matty; Tollens, Eric.
In the present paper we estimate the impact of a biotechnology innovation in Spanish agriculture. Transgenic Bt maize offers the potential to control corn borers, that cause economically important losses in Spanish maize cultivation, more efficiently. Since 1998, Syngenta commercializes the variety Compa CB, equivalent to an annual area of 25.000ha, or an average adoption rate of 5,2% of Spain’s total land allocation to maize. The profit increase engendered by this technological change during the four-year period 1998-2001 is estimated to be E8,4 million for Spanish agriculture and E2,8 million for Syngenta and the seed suppliers. The industry appears to be able to extract only one fourth of the total benefits. The lion share, i.e., three fourth,...
Tipo: Working or Discussion Paper Palavras-chave: Research and Development/Tech Change/Emerging Technologies.
Ano: 2003 URL: http://purl.umn.edu/31851
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BOSERUP VERSUS MALTHUS REVISITED: EVOLUTION OF FARMS IN NORTHERN COTE D'IVOIRE AgEcon
Demont, Matty; Jouve, Philippe; Stessens, Johan; Tollens, Eric.
The literature on the evolution of farming systems in West Africa shows a large diversity of general theories on rural development. The purpose of this study is to revisit the theses of Malthus and Boserup and empirically test them on a case study of Northern Cote d’Ivoire. We have at our disposal a database spread over three agricultural seasons (1995-1998) and four villages. These villages differ strongly regarding their population density and historical genesis. The comparison between these villages permits us to track down their stage in the evolution of farming systems and to identify population pressure as a key factor of the evolution of farming systems and to identify population pressure as a key factor of the evolution process of farms. Our...
Tipo: Working or Discussion Paper Palavras-chave: International Development; Production Economics.
Ano: 2004 URL: http://purl.umn.edu/31836
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