Chapter 7 The Environmental Benefits and Costs of Genetically Modified (GM) Crops

The Cost of Postponement of Bt Rice Commercialization in China

To maintain self-sufficiency in rice production and national food security, the Chinese government strongly supports research that aims at increasing the productivity of rice cultivation. Rice with genetic material from Bacillus thuringiensis (Bt rice) is transgenic rice that can reduce lepidopteran pest damage and the use of insecticides. It was developed in the 1990s and earned biosafety certificates in 2009. However, because of political reasons, its commercialization in China has been postponed, and, to date, Bt rice is not grown in China. We assess the opportunity cost of postponement of Bt rice commercialization in China between the years 2009 and 2019 and consider the external costs of pesticide use and potential technology spill-overs of Bt rice. We estimate the cost of postponement of Bt rice over the analyzed period to be 12 billion United States (US) dollars per year.

Perspective: regulation of pest and disease control strategies and why (many) economists are concerned

Pests and diseases are a continuous challenge in agriculture production. A wide range of control strategies have been and will continue to be developed. New control strategies are in almost all countries around the world assessed prior to approval for use in farmers' fields. This is rightly so to avoid and even reduce negative effects for human health and the environment. Over the past decades the approval processes have become increasingly politicized resulting in an increase in the direct approval costs and the length in approval time without increasing the safety of the final product. This reduces the development of control strategies and often has negative human health and environmental effects. Possibilities exist for improvements. They include reducing approval costs and approval time by streamlining the approval process and substituting approval requirements by strengthening ex-post liability. © 2018 Society of Chemical Industry.

New Plant Breeding Techniques Under Food Security Pressure and Lobbying

Different countries have different regulations for the approval and cultivation of crops developed by using new plant breeding technologies (NPBTs) such as gene editing. In this paper, we investigate the relationship between global food security and the level of NPBT regulation assuming a World Nation Official (WNO) proposes advice on global NPBT food policies. We show that a stricter NPBT food regulation reduces food security as measured by food availability, access, and utilization. We also find that political rivalry among interest groups worsens the food security status, given the NPBT food technology is more productive and the regulatory policy is influenced by lobbying. When the WNO aims to improve food security and weighs the NPBT food lobby contribution more than the non-NPBT food lobby's in the lobbying game, the total lobbying contributions will be the same for the WNO, and the NPBT food lobby will be more successful in the political process. The NPBT food lobby, however, under food security loses its advantage in the political competition, and this may result in a strict NPBT food policy. Under food security problems implementing stricter NPBT food regulations results in welfare losses. JEL Code: D04, D43, D72, P16.