GianCarlo Moschini (Iowa State University, U.S.A.) The Value of Product Innovations: Genetically Engineered Seeds

Organised by Section Economics

Tue 15 October 2019 12:30 to 13:30

Venue Leeuwenborch, building number 201
Room C83

We develop a discrete-choice model of differentiated products for U.S. corn and soybean seed demand to study the welfare impact of genetically engineered (GE) crop varieties. Using a unique dataset spanning the period 1996-2011, we find that the welfare impact of the GE innovation is significant. In the last five years of the period analyzed, our preferred counterfactual indicates that total surplus due to GE traits was $5.18 billion per year, with seed manufacturers appropriating 56% of this surplus. The seed industry obtained more surplus from GE corn, whereas farmers received more surplus from GE soybeans.