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GTAP Resource #1648

"International diffusion of gains from biotechnology and the European Union’s Common Agricultural Policy"
by van Meijl, Hans and Frank van Tongeren

This paper analyses the impact of adopting or rejecting genetically modified (GM) crops in the European Union, taking into account the EU Common Agricultural Policy (CAP). In this paper the productivity impact of genetically modified organisms (GMOs) differs across crops, taking factor biased technology change into account. The transfer of knowledge across countries is modelled as a process of endogenous knowledge spill-overs. Analysis with a multi-region applied general equilibrium model shows that the CAP protects farm income and production despite non-adoption of the more productive GM crops in the EU. The EU will forgo substantial benefits in terms of economic welfare if it bans GM imports.

Resource Details (Export Citation) GTAP Keywords
Category: GTAP Application
Status: Published
By/In: Agricultural Economics, vol. 31: 307-316.
Date: 2004
Created: van Tongeren, F. (12/19/2004)
Updated: Dimaranan, B. (12/20/2004)
Visits: 2,063
- Technological change
- European Union

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