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Economic Risks and Opportunities from the Release of Genetically Modified Organisms in New Zealand

April 2003, Ref. ME465

This research report was prepared for the Ministry for the Environment and the Treasury by BERL and AERU. It is part of the Government’s package of measures in response to the 2001 report of the Royal Commission on Genetic Modification. The research examines the economic risks and opportunities associated with the release of three different types of genetically modified organisms (GMOs) in New Zealand, as well as of New Zealand forgoing GMO releases.

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Contents:

Executive Summary

  1. Introduction
  2. New Zealand’s Clean Green Image and GM Status
    2.1 New Zealand’s clean green image
    2.2 The economic analysis of GM in primary production
    2.3 Issues making GM economically important to New Zealand
    2.4 Approach to the analysis
    2.5 Risks and world market opinion
    2.6 Potential GMO opportunities
  3. Impact on New Zealand Image and Markets of GM Status
    3.1 International market survey results
    3.2 Inbound tourist survey results
    3.3 Translating the survey results to model inputs: demand changes
    3.4 Translating the survey results to model inputs: sensitivity to price changes
  4. New Zealand’s Production System
    4.1 GM application globally
    4.2 GM opportunities in production
    4.3 The pest control scenario
    4.4 Human therapeutics scenario
    4.5 New Zealand refrains from releasing GMOs scenario
  5. Economy-Wide Model Experiments
    5.1 The model
    5.2 Inputs for the experiments investigating the release of GMOs
    5.3 Interpreting the model
    5.4 The control or base case scenario
    5.5 Schema of model experiments
    5.6 Pastoral GMO scenarios (refs #1 to #3 and #6)
    5.7 Pest control GMO scenarios (refs #4 and #5)
    5.8 Discussion of pastoral and pest control scenarios
    5.9 Scenarios where New Zealand foregoes GMOs (refs #7 to #10)
    5.10 Human medicine GMO scenarios (refs #11 to #14)
    5.11 Discussion of human medicine scenarios
    5.12 A combined scenario
  6. Agricultural Trade Model Experiments
    6.1 The empirical model
    6.2 Results
    6.3 Scenario: New Zealand releases pastoral GMO
    6.4 Scenario: New Zealand foregoes use of GMOs
    6.5 Discussion of GM scenarios on agriculture
    References
  7. Conclusions on Economic Outcomes
  8. Critical Factors Determining Economic Outcomes

Appendices

 

 

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