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Global welfare effects of transgenic sugar beet

Author

Listed:
  • Dillen, Koen
  • Demont, Matty
  • Tollens, Eric

Abstract

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 producers could take place as was one of the goals of the reform.

Suggested Citation

  • Dillen, Koen & Demont, Matty & Tollens, Eric, 2007. "Global welfare effects of transgenic sugar beet," 2007 Annual Meeting, July 29-August 1, 2007, Portland, Oregon 9783, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea07:9783
    DOI: 10.22004/ag.econ.9783
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