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How Agricultural Biotechnology Boosts Food Supply and Accomodates Biofuels

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  • Steven Sexton
  • David Zilberman

Abstract

Increased global demand for biofuels is placing increased pressure on agricultural systems at a time when traditional sources of yield improvements have been mostly exhausted, generating concerns about the future of food prices. This paper estimates the impact of global adoption of genetically engineered (GE) seeds on food supply by exploiting the spatial and temporal variation in the adoption of GE crops to identify the average yield effect due to GE technologies among adopters. The yield gains range from 65% for GE cotton to 12.4% for soybeans and appear to be higher in the developing world than in developed countries. The authors simulate food prices during the 2008 food crisis without GE-seed-induced yield gains. Genetically engineered crops appear to play an important role in arbitrating tensions between energy production, environmental protection, and global food supplies.

Suggested Citation

  • Steven Sexton & David Zilberman, 2011. "How Agricultural Biotechnology Boosts Food Supply and Accomodates Biofuels," NBER Working Papers 16699, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:16699
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    References listed on IDEAS

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    Cited by:

    1. Barrows, Geoffrey & Sexton, Steven & Zilberman, David, 2014. "The impact of agricultural biotechnology on supply and land-use," Environment and Development Economics, Cambridge University Press, vol. 19(6), pages 676-703, December.
    2. Ladislav Kristoufek & Karel Janda & David Zilberman, 2015. "Co-movements of Ethanol Related Prices: Evidence from Brazil and the USA," CAMA Working Papers 2015-11, Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University.

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    JEL classification:

    • Q1 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture

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