Gotsch, N. and Wohlgenant, M.K (2001) A Welfare Analysis of Biological Technical Change under Different Supply Shift Assumptions: The Case of Cocoa in Malaysia. Canadian Journal of Agricultural Economics, 49 (1). pp. 87-104.
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Abstract
Emerging modem biotechnological improvements will make possible the cultivation of crops with higher yields, while enhanced resistance to pests and diseases will facilitate a reduction in the use of pesticides. In this article, the welfare effects of a regional technical change in relation to a perennial crop are measured. Dynamic aspects of supply responses to prices as well as to changes in technology are addressed when the effects of biological lag and the variation of asset productivity are taken into consideration. The effects of the adoption of improved cultivars are assessed for both a parallel and a conservative, pivotal shift in the supply curve. The theoretical model is implemented for cocoa in Malaysia as a large producer country on the one hand and all other countries as an aggregate on the other. Relatively small price and quantity effects result from the adoption of new cultivars. Although the magnitude of the effects on producer benefits and total benefits in Malaysia depend crucially on the type of supply shift assumed, significant benefits occur for Malaysian producers. Consumersapos; gains in the ROW are approximately offset by producers' losses in the ROW, suggesting that a considerable share of the gains would benefit consumers in economically well-developed northern hemisphere countries at the expense of producers who do not immediately adopt improved cultivars...
| Item Type: | Article |
|---|---|
| Additional Information: | Valuable comments and suggestions made by Roland Herrmann, Institute of Agricultural Policy and Market Research, University of Giessen, Germany, are very much appreciated as well as the support provided by Kees Burger, Economic and Social Institute, Free University, Amsterdam, The Netherlands, with respect to modeling aspects for perennial crops. The empirical implementation of the theoretical model was possible because numerous cocoa production system experts completed the questionnaires for the collection of agronomic and economic data on cocoa production systems in Malaysia. The authors wish to thank two anonymous referees for helpful comments on previous versions of this manuscript. The remaining errors are in the responsibility of the authors. The study made part of a research project funded by a three-year research grant of the Swiss National Science Foundation, Bern, Switzerland, which is kindly acknowledged |
| Author Affiliation: | Swiss Federal Institute of Technology (ETH), Agricultural Economics, ETH Zentrum, CH-8092 Zurich, Switzerland |
| Subjects: | Statistics and Experimentation Crop Improvement > Biotechnology |
| Divisions: | General |
| Depositing User: | Mr Daneti Raju |
| Date Deposited: | 09 Feb 2014 11:50 |
| Last Modified: | 09 Feb 2014 11:50 |
| Official URL: | http://dx.doi.org/10.1111/j.1744-7976.2001.tb00292... |
| URI: | http://eprints.icrisat.ac.in/id/eprint/12452 |
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