IDEAS home Printed from https://ideas.repec.org/p/ags/nddaae/128033.html
   My bibliography  Save this paper

Valuing New Random GM Traits: The Case of Drought Tolerant Wheat

Author

Listed:
  • Shakya, Sumadhur
  • Wilson, William W.
  • Dahl, Bruce L.

Abstract

There has been an increase in support for developing genetic modification (GM) technology in wheat. The purpose of this paper was to develop an analytical model to analyze the value of GM traits at different phases of development. To do so we developed a stochastic binomial model of real options. The results indicate that the value of drought tolerant wheat using GM technology is in-the-money at each phase of development. The greatest value would accrue to the Prairie Gateway and northern Great Plains regions in the United States.

Suggested Citation

  • Shakya, Sumadhur & Wilson, William W. & Dahl, Bruce L., 2012. "Valuing New Random GM Traits: The Case of Drought Tolerant Wheat," Agribusiness & Applied Economics Report 128033, North Dakota State University, Department of Agribusiness and Applied Economics.
    • Handle: RePEc:ags:nddaae:128033
    DOI: 10.22004/ag.econ.128033
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/128033/files/AAE691.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.128033?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. David Zilberman, 2006. "The Economics of Biotechnology Regulation," Natural Resource Management and Policy, in: Richard E. Just & Julian M. Alston & David Zilberman (ed.), Regulating Agricultural Biotechnology: Economics and Policy, chapter 0, pages 243-261, Springer.
    2. Wilson, William W. & Janzen, Edward L. & Dahl, Bruce L. & Wachenheim, Cheryl J., 2003. "Issues In Development And Adoption Of Genetically Modified (Gm) Wheats," Agribusiness & Applied Economics Report 23497, North Dakota State University, Department of Agribusiness and Applied Economics.
    3. Guanming Shi & Jean-paul Chavas & Kyle Stiegert, 2010. "An Analysis of the Pricing of Traits in the U.S. Corn Seed Market," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 92(5), pages 1324-1338.
    4. Huso, Scott R. & Wilson, William W., 2005. "Impacts Of Genetically Modified (Gm) Traits On Conventional Technologies," Agribusiness & Applied Economics Report 23491, North Dakota State University, Department of Agribusiness and Applied Economics.
    5. Magnier, Alexandre & Kalaitzandonakes, Nicholas G. & Miller, Douglas J., 2010. "Product Life Cycles and Innovation in the US Seed Corn Industry," 2010 Annual Meeting, July 25-27, 2010, Denver, Colorado 61779, Agricultural and Applied Economics Association.
    6. Magnier, Alexandre & Kalaitzandonakes, Nicholas G. & Miller, Douglas J., 2010. "Product Life Cycles and Innovation in the US Seed Corn Industry," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 13(3), pages 1-20, September.
    7. William W. Wilson & Bruce L. Dahl, 2005. "Costs and Risks of Testing and Segregating Genetically Modified Wheat," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 27(2), pages 212-228.
    8. William Wilson & Bruce Dahl, 2010. "Competition and Dynamics in Market Structure in Corn and Soybean Seed," Antitrust Chronicle, Competition Policy International, vol. 4.
    9. William W. Wilson & Bruce L. Dahl, 2005. "Costs and Risks of Testing and Segregating Genetically Modified Wheat," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 27(2), pages 212-228.
    10. Richard E. Just & Julian M. Alston & David Zilberman (ed.), 2006. "Regulating Agricultural Biotechnology: Economics and Policy," Natural Resource Management and Policy, Springer, number 978-0-387-36953-2, March.
    11. Kent J. Bradford & Julian M. Alston & Nicholas Kalaitzandonakes, 2006. "Regulation of Biotechnology for Specialty Crops," Natural Resource Management and Policy, in: Richard E. Just & Julian M. Alston & David Zilberman (ed.), Regulating Agricultural Biotechnology: Economics and Policy, chapter 0, pages 683-697, Springer.
    12. Huso, Scott R. & Wilson, William W., 2005. "Impacts Of Genetically Modified (Gm) Traits On Conventional Technologies - Summary," Agribusiness & Applied Economics Report 23560, North Dakota State University, Department of Agribusiness and Applied Economics.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Shakya, Sumadhur & Wilson, William W. & Dahl, Bruce L., 2013. "Valuing New Random Genetically Modified (GM) Traits in Corn," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 38(01), pages 1-17, April.
    2. Huffman, Wallace E., 2010. "Consumer acceptance of genetically modified foods: traits, labels and diverse information," ISU General Staff Papers 201008270700001120, Iowa State University, Department of Economics.
    3. Nolan, Elizabeth & Santos, Paulo & Shi, Guanming, 2012. "Market concentration and productivity in the United States corn sector: 2002-2009," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 125941, Agricultural and Applied Economics Association.
    4. MacDonald, James M. & Dong, Xiao & Fuglie, Keith O., 2023. "Concentration and Competition in U.S. Agribusiness," Economic Information Bulletin 337566, United States Department of Agriculture, Economic Research Service.
    5. Konduru, Srinivasa & Kalaitzandonakes, Nicholas G. & Magnier, Alexandre, 2009. "GMO Testing Strategies and Implications for Trade: A Game Theoretic Approach," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 49594, Agricultural and Applied Economics Association.
    6. Johnson, D. Demcey & Lin, William & Vocke, Gary, 2005. "Economic and welfare impacts of commercializing a herbicide-tolerant, biotech wheat," Food Policy, Elsevier, vol. 30(2), pages 162-184, April.
    7. Matthew Rousu & Wallace E. Huffman & Jason F. Shogren & Abebayehu Tegene, 2007. "Effects And Value Of Verifiable Information In A Controversial Market: Evidence From Lab Auctions Of Genetically Modified Food," Economic Inquiry, Western Economic Association International, vol. 45(3), pages 409-432, July.
    8. Gawron, Jana-Christina & Theuvsen, Ludwig, 2007. "Costs of Processing Genetically Modified Organisms: Analysis of the Rapeseed and Corn Industries," 47th Annual Conference, Weihenstephan, Germany, September 26-28, 2007 7601, German Association of Agricultural Economists (GEWISOLA).
    9. Federico Ciliberto & GianCarlo Moschini & Edward D. Perry, 2019. "Valuing product innovation: genetically engineered varieties in US corn and soybeans," RAND Journal of Economics, RAND Corporation, vol. 50(3), pages 615-644, September.
    10. Bastgen, A. & Holzner, C.L., 2017. "Employment protection and the market for innovations," Labour Economics, Elsevier, vol. 46(C), pages 77-93.
    11. Zilberman, David & Hochman, Gal & Sexton, Steven E., 2008. "Food Safety, the Environment, and Trade," Agricultural Distortions Working Paper Series 48637, World Bank.
    12. Zilberman, David & Graff, Gregory & Hochman, Gal & Kaplan, Scott, 2015. "The Political Economy of Biotechnology," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 64(04), December.
    13. Gray, Emily M. & Ahmadi-Esfahani, Fredoun Z., 2008. "Uncertainty aversion in Australian regulation of agricultural gene technology," 2008 Conference (52nd), February 5-8, 2008, Canberra, Australia 6045, Australian Agricultural and Resource Economics Society.
    14. Crowe, Bronwyn & Pluske, Johanna M., 2006. "Is it Cost Effective to Segregate Canola in WA?," Australasian Agribusiness Review, University of Melbourne, Department of Agriculture and Food Systems, vol. 14.
    15. Kym Anderson & Lee Ann Jackson, 2005. "GM crop technology and trade restraints: economic implications for Australia and New Zealand," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 49(3), pages 263-281, September.
    16. Heyder, Matthias & Theuvsen, Ludwig, 2010. "Corporate Social Responsibility in the agri-food sector: the case of GMOs," Problems of World Agriculture / Problemy Rolnictwa Światowego, Warsaw University of Life Sciences, vol. 10(25), pages 1-18, September.
    17. Pardey, Philip G. & James, Jennifer S. & Alston, Julian M. & Wood, Stanley & Koo, Bonwoo & Binenbaum, Eran & Hurley, Terrance M. & Glewwe, Paul & Mayer, Jorge & Jones, Richard & De Groote, Hugo & Kana, 2007. "Science, Technology and Skills," Reports 136256, University of Minnesota, International Science and Technology Practice and Policy.
    18. Saavoss, Monica & Capehart, Thomas & McBride, William D & Effland, Anne, 2021. "Trends in Production Practices and Costs of the U.S. Corn Sector," Economic Research Report 327190, United States Department of Agriculture, Economic Research Service.
    19. Seungki Lee & GianCarlo Moschini, 2020. "Estimating the Value of Innovation and Extension Information: SCNResistant Soybean Varieties," Center for Agricultural and Rural Development (CARD) Publications 20-wp603, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    20. Gray, Emily & Ancev, Tihomir & Drynan, Ross, 2011. "Coexistence of GM and non-GM crops with endogenously determined separation," Ecological Economics, Elsevier, vol. 70(12), pages 2486-2493.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:nddaae:128033. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/dandsus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.