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Simulating Bst Introduction In California For Dairy Policy Analysis

Author

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  • Zepeda, Lydia
  • Butler, Leslie J.
  • Carter, Harold O.

Abstract

An econometric model is estimated to simulate the impact of introducing bovine somatotropin (BST) on the California dairy industry. Forecasts of 1991-94 milk production and prices without BST are compared to those with BST under the 1990 Farm Bill. The effects are evaluated under a range in assumptions, given the uncertainty about BST's commercial benefits and costs. Results indicate the aggregate returns of BST introduction for California are positive, but small, assuming no adverse consumer reaction.

Suggested Citation

  • Zepeda, Lydia & Butler, Leslie J. & Carter, Harold O., 1991. "Simulating Bst Introduction In California For Dairy Policy Analysis," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 16(2), pages 1-10, December.
    • Handle: RePEc:ags:wjagec:32595
    DOI: 10.22004/ag.econ.32595
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    References listed on IDEAS

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    1. Harry M. Kaiser & Loren W. Tauer, 1989. "Impact of Bovine Somatotropin on U.S. Dairy Markets under Alternative Policy Options," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 11(1), pages 59-73.
    2. Blayney, Don P. & Fallert, Richard F., 1990. "Biotechnology and Agriculture: Emergence of Bovine Somatotropin (bST)," Staff Reports 278330, United States Department of Agriculture, Economic Research Service.
    3. Sellschopp, Jork & Kalter, Robert J., 1989. "Bovine Somatotropin: Its Impact on the Spatial Distribution of the U.S. Dairy Industry," Research Bulletins 183315, Cornell University, Department of Applied Economics and Management.
    4. Weersink, Alfons & Howard, Wayne H., 1990. "Regional Adjustment Response In The U.S. Dairy Sector To Changes In Milk Support Price," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 15(1), pages 1-9, July.
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    Cited by:

    1. Caswell, Margriet F. & Fuglie, Keith O. & Klotz, Cassandra A., 1994. "Agricultural Biotechnology: An Economic Perspective," Agricultural Economic Reports 262025, United States Department of Agriculture, Economic Research Service.
    2. Constantine, John H & Alston, Julian M & Smith, Vincent H, 1994. "Economic Impacts of the California One-Variety Cotton Law," Journal of Political Economy, University of Chicago Press, vol. 102(5), pages 951-974, October.

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