| This dissertation explored the introduction of transgenic varieties in the seed cotton sector. Transgenic cotton varieties were sown commercially in the United States for the first time in 1996. Varieties released by Delta and Pine Land seed company incorporated a gene construct from Monsanto. Two distinct areas were investigated. The degree of germplasm exchange between public and private cotton breeding institutions in the United States and the economic surplus creation and distribution of rents between the biotechnology and traditional plant breeding firms, U.S. farmers and consumers, and rest of the world farmers and consumers.; Two different methodologies, the quasi-rent and economic surplus models, were applied. The quasi-rent approach indicated that economic surplus increased by US {dollar}215,622,294 from the introduction of biotechnology varieties. Consumers and farmers in the U.S. gained {dollar}16,645,258 and {dollar}117,448,824 respectively. Rest of the world consumers gained an estimated {dollar}18,679,826, whereas ROW producers lost an estimate of {dollar}7,658,729. ROW producers lost because in 1996 they did not have access to the technology. Monsanto (the biotechnology innovator) gained and estimated {dollar}49,826,453, whereas Delta and Pineland gained and estimated {dollar}13,021,932.; The economic surplus model presented by Alston, Norton and Pardey, indicated that economic surplus increased by {dollar}171,265,388 from the introduction of Bt cotton into the United States. U.S. consumers and farmers gained {dollar}15,882,3 17 and {dollar}74,364,501 respectively. ROW producers lost {dollar}7,672,424, whereas ROW consumers gained {dollar}18,708,776. Monsanto gained an estimated {dollar}49,287,862, whereas Delta and Pine Land gained an estimated {dollar}13,021,932.; It is unclear whether or not the biotechnology and traditional plant breeding firms gained from the introduction of Bt cotton. Although technology fees and seed premiums were charged to farmers, there is little agreement of how to treat costs of development. Thus, gains from the release of Bt cotton may not cover development costs. |
