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This chapter analyzes the economic implications of genetic engineering for food security. We discuss the asynchronous nature of genetically modified (GM) crop regulation and labeling requirements among countries, associated politics, and consumer perceptions of GM crops.

We perform an ex-ante analysis of the introduction of a GM rice variety in major rice exporting and importing countries (including potential producer and consumer impacts) within the framework of a partial equilibrium trade model.

Although the introduction of a GM rice variety that increases global yield by 5% could result in a consumer gain of US$23.4 billion to US$74.8 billion, it could also result in a producer loss of US$9.7 billion to US$63.7 billion. The estimated net gain to society could be US$11.1 billion to US$13.7 billion. Overall, we find a positive economic surplus for major exporters and importers of rice based on a 5% supply increase with a GM rice variety.

The adoption of transgenic (GM) rice varieties would have a far greater impact on rice prices for poorer counties than for richer countries. Therefore, GM rice may help ensure that more people throughout the world would have food security.

World agriculture faces enormous challenges in the coming decades. To feed the world adequately in 2050, agricultural production in developing economies will need to nearly double. Incremental production will mainly come from increases in yields or cropping intensities. This chapter focuses on the potential of genetically modified (GM) crops to contribute to agricultural productivity growth and poverty reduction in developing economies. On the basis of a comprehensive literature review of the most recent literature, we aim to shed light on (a) whether GM crops benefit farmers in developing economies and (b) whether GM crops that are currently in the research pipeline address future challenges for agriculture. The first part of the chapter reviews farm-level impacts of GM crops in developing economies. The second part discusses the GM crop research pipeline. GM crop markets are expected to grow in the future but not to change dramatically. We conclude that GM crops benefited farmers, including resource-poor farmers, in developing economies, but benefits are location- and individual-specific. Addressing such complexities will be required to unlock technology potentials.

Purpose – The chapter examines the international welfare effects of biotech crop adoption, based on a transversal literature review and a case study of the introduction of genetically modified (GM) food crops in Bangladesh, India, Indonesia, and the Philippines.

Methodology/approach – The analysis is based on (a) a review of lessons from the applied economic literature and (b) simulations using an improved multimarket, multicountry, computable general equilibrium (CGE) model, calibrated with productivity hypotheses formulated with local scientists in the four Asian countries.

Findings – Results from the analysis show that, in the absence of trade-related regulations, GM crop adoption generates economic gains for adopting countries and importing non-adopters, that domestic regulations at adopters and especially non-adopters can reduce these gains, and that import regulations in other countries can also affect gains for exporting adopters. The case study illustrates these conclusions, but it also shows that net importers will mostly benefit from adoption in their terms of trade, and that segregation of non-GM crops for export markets can be beneficial if it is not too costly.

Research limitations/implications – The use of a CGE model allows for accounting for cross-sectoral effects, and for regulations affecting bilateral trade flows, but it also has a number of limitations. The model used here, like the ones used in the other papers in the literature, is static, based on an aggregated representation of the global economy (GTAP database), and assumes perfect competition. This means that the absolute results of each scenario may not perfectly represent the actual welfare effects engendered by the adoption of biotech crops. Still, what matters here is the comparison of the relative welfare effects across countries and scenarios. The simulations are also done ex-ante, so, even if the model here was calibrated with country-based data, the results do depend on hypothetical assumptions about the performance of the selected technologies.

Originality/value of the paper – The chapter aims to illustrate the welfare effects generated by GM crops for adopters, non-adopters, in a segmented and regulated international market. Unlike other papers, the review section provides key transversal lessons from the literature, accounting for results from both partial equilibrium and CGE model studies. The empirical application focuses on four populous Asian countries that have been largely left out of the literature. The model used in the simulation presents a number of improvement from the CGE literature on GM crops, including partial adoption, factor-biased productivity shock in each adopting country, GM labeling regulations modeled as trade filters, and the inclusion of costly non-GM segregation as observed in the international market.

On December 31, 2018, the White Earth Reservation Business Committee, or tribal council, passed Resolution Number 001-19-009 recognizing the inherent rights of wild rice. The resolution also includes a regulation entitled “Rights of Manoomin,” meaning the regulation is enforceable under tribal law (White Earth Reservation Business Committee, 2019, pp. 19–21). The Rights of Manoomin lays out the legal protections afforded to wild rice under the resolution. The Reservation Business Committee passed Resolution Number 001-19-010 the same day to support the previous resolution (White Earth Reservation Business Committee, 2019, pp. 22–26). The resolution to recognize the inherent rights of wild rice is part of a larger international movement to recognize the rights of nature (Bouayad, 2020, pp. 39–40). However, the case of the White Earth Anishinaabeg (pl.) and wild rice is different for two reasons. First, the Rights of Manoomin regulation is the first to recognize the inherent rights of a plant (LaDuke, 2019). Second, the resolution claims protection for wild rice in all the territories the Anishinaabeg ceded under the 1867 treaty with the United States government that established the reservation. In this paper, I will argue that the importance of wild rice to the Anishinaabeg and the threats it is currently under served as an impetus for the White Earth Reservation Business Committee to pass the resolutions in question.

The purpose of this paper is to assess whether China’s public sector can continue to generate advanced genetically modified (GM) technologies that will be competitive in the market.

The authors investigated all the research teams that have been conducting research projects under the variety development special program. The data collected include detail information on research capacity, research areas, performance, and process of their research projects. Based on the survey data, the authors assessed the innovations and progress of the variety development special program.

Unlike other countries, most GM products in China are developed by public research institutes. There is rising concern on the ability of China’s public sector to continuously generate indigenous GM technology that can compete with multinational companies. The study surveyed 197 research institutes and 487 research teams and found that the GM program in China lacks coordination: researchers do not want to share their research materials with others. Due to the lack of coordination, most of the hundreds of research teams often worked independently in the year 2008-2010. Moreover, the authors found the lack of coordination may be due to the reason that the interests of researchers are not well protected. This paper also provided the recent progress and policy changes of GM program in China, and it found that the efficiency in the later three years improved a lot. In order to establish a competitive national public GM research system, China should continuously consolidate and integrate the upstream, midstream, and downstream activities of the whole GM innovation process. China’s public sector may also need to work more closely with both the domestic and international private sectors.

This paper is a comprehensive analysis on the development of transgenic technology in China. The results of this paper can provide evidence for the dynamic adjustment of the policies in the variety development special program and can also provide reference for the future assessment of the variety development special program.

Contemporary business is rather global. Food imports and exports are expanding beyond borders to meet increasing domestic and international food and consumer demands. Genetically modified (GM) food emerged as a potential sustainable solution which aims at meeting consumer demands and to mitigate urgent global food security problem. Because of its nature of existence, GM food is a controversial topic in several countries and has varied acceptance rates by consumers. Both government and consumers are antagonistic towards GM foods in most European countries. In contrast, most Asian consumers are neutral and so do not oppose GM foods. The purpose of this viewpoint paper is to examine the factors determining the difference in acceptance of GM foods between cultures. Such information can facilitate policy implications for governments in global agri-food trade and for producers in segregating markets.

Extensive literature review is done to base the discussions of this viewpoint paper.

This paper presents five factors that describe the difference in acceptance of GM foods between Europeans and Asians: knowledge and trust over the institutions performing research, uncertainty avoidance and health, gender differences, risk perception and material benefits and food for survival.

There is no systematic study that compares factors determining acceptance of GM foods across cultures.

Experimental auctions are widely used as a non-hypothetical value elicitation method to examine consumer preferences for novel, controversial foods. However, despite its advantages over hypothetical methods, its practice might lead to a wide variety of biases. The purpose of this paper is to provide a list of key cognitive biases and design effects in food auction research and to deliver scientifically underpinned procedures in order to assess, control and reduce them. Its applicability and relevance is examined in auctions on willingness-to-pay for folate (GM) biofortified rice.

Based on auction literature, a list of 18 biases has been developed. Experimental auctions were conducted with 252 women from Shanxi Province, China to test the occurrence of eight biases, while demonstrating measures to reduce the risk of ten biases.

The results lend support for three information-related effects, i.e. confirmation bias, conflicting product information effects and a primacy bias, but not for a multiple-good valuation effect, a panel size effect, a trial winner effect and time-related sampling biases. Furthermore, there are no clear indications of social desirability bias, auction fever and a false consensus effect.

This study emphasizes the need to take into account, and measure the risk of various biases when developing, organizing and interpreting experimental auctions. Future research should further extend the list of biases and validate the study findings.

By using a highly topical subject, this study is one of the first to address the potential risk of cognitive biases and design effects in experimental (food) auctions.

Posits that trade in agriculture constitutes the main element of the ongoing multilateral trade negotiations, with the World Trade Organisation, which has a conclusion date of 1 January 2005. Acknowledges that liberalization of trade in this sector was the prime reason why developing countries joined the WTO. Reckons that developed countries resist mounting pressure of decisive moves towards agricultural improvement, during the trade negotiations, by trying to protect their own agricultural sectors from foreign competition.

Since the 1980s agricultural biotech investments by the public sector have increased substantially in both China and India. In the last two decades there has also been a dramatic increase in private section investment in agricultural biotechnology particularly in India. The promise of major benefits of Bt cotton identified in early socioeconomic studies of Bt cotton has proven to be true. Bt cotton has spread to at least 66% and 85% of total cotton areas of China and India, respectively – wherever bollworm is a major problem. Bt cotton continues to control bollworm in both countries, and farmers continue as major beneficiaries rather than biotech or seed companies. The major impacts have been yield increases in India and reduced pesticides consumption in China. In China, evidence also suggests that Bt cotton has suppressed the bollworm population so that non-Bt cotton growers and producers of other crops that are susceptible to bollworm are also benefitting.

The chapter also provides evidence that in the near future Bt rice and Bt eggplant could have major positive impacts by reducing pesticide use and farmers’ exposure to chemical pesticides and increasing yields. Both crops were approved for commercial production by government biosafety regulators, but are not yet available for commercial cultivation.