PMB 10 Final
intersection of GM and CRISPR
CRISPR and other tools have enhanced potential to increase yields, reduce prices, and improve env health along with GM but restrictions to both have been costly and need smart regulations if biotech is continued to be restricted
science behind CRISPR
CRISPR is an immune system to protect bacteria and archaea against viruses with the associated cas gene 9 using RNA-DNA base pairing
case study: stomatal density of rice
STOMAGEN/epfl10 is a regulator of stomatal (major sites of water loss) development which reduce stomatal density in rice and conserve water
contracts
a choice of innovators for production to establish contracts with upstream suppliers- good because the innovator has limitations of human capital/credit and the desire to build a large brand to ward off competition
adoption
a decision by a specific individual to use a new technology and is measured at the individual level
s-shaped diffusion curve
a diffusion curve characterized by slow initial growth followed by a rapid increase in diffusion which levels out due to early educated adopters influencing their followers which leads to a takeoff/growth while less educated individuals join late or not at all
biofuels
a fuel derived directly from living matter- sugarcane and corn are economically viable
transgenic plant
a genetically modified plant that results in a viable plant carrying a new gene- artificial genome
household production model
a modern approach to food demand where the demand for food depends on household composition and labor market considerations because it recognizes that families purchase food products and use equipment/time to produce meals
innovation
a new way of doing things that can include new markets or a new product
CRISPR
a technology that can be used to edit genes by adding and removing them- can lead to animal free meats, improved livestock, and new plant varieties
genetic modification
a technology that changes the genetic material of a living organism- can introduce any gene, quick, best for simple traits, more regulation
hedonic model
a theoretical model that allows consideration of differentiated goods through a value function (product price) based on a food's health, quality, taste, and convenience because value is placed on a willingness to pay for convenience and taste
agrobacterium tumefaciens
a tumor-inducing bacteria in plants that has been altered by scientists to transfer traits (genes/DNA) from one plant to another
diffusion
aggregate adoption or the overall use of technology in society, measured by the percentage of potential users in a market who actually adopt
biotechnology and crop biodiversity
agricultural biotechnology allows minor modification of existing varieties and under appropriate institutional setup can be adopted while preserving crop biodiversity
traditional demand theory
an inadequate modeling of demand that does not take into account non-market activities, product innovation, and product quality differences because it ignored the intrinsic properties of goods
interdisciplinary research
an integrated approach to research that introduces biological and physical concepts to risk-analysis framework
economic applications to agriculture
analysis of behavior and outcomes (crop choice, new tech, agriculture prices), policy impact assessment (policy/tech), and policy design (incentives/efficiency)
public policy research
analysis of government activities in various areas- pragmatic applied, interdisciplinary (combines politics with economics and math)
interdisciplinary elements in economics
analyzes resources allocation and emphasizes explaining policies, rationality, markets, and money, borrows heavily from stats, can be used as an integrating discipline in policymaking, strong applied subfields
agricultural biotechnology
applies modern tools of molecular and cell biology to agriculture since the discovery of DNA
how does biotechnology revive biofuelds
applying CRISPR technology in rice will reduce acreage to grow sugarcane for biofuels in places such as india, vietnam, china, and africa
assumptions and problems with US agriculture
assumptions: high innovation, many small firms, competitive markets, inelastic demand, randomness, and environmental side effects results: low farm income, unstable yields/prices, rural poverty, environmental/resource degradation
applications of CRISPR in bananas/cocoa
bananas: stop damage caused by foc virus on bananas that would affect 60-80% of bananas and their production cocoa: aims to lessen vulnerability to swollen shoot virus of cocoa faster than years and to increase yield/make new varieties
genetic modification and regulations
bans and excess regulations prevent genetic modification from reaching its potential- misguided policies lead to missed opportunities
bioeconomy
basic definition: economic activities that rely on biological processes to produce economic value process based: economic activity derived from research activity input based: economic activity based on processing of organisms/systems
current wold food outlook
because of millennium development goals and other initiatives, poverty and malnourishment has been decreasing despite increased demand for foods such as cereals from developing countries with population growth
zinc fingers
binds a zinc ion; part of the finger of amino acids that bind DNA
regulations and bioeconomics
bioeconomy in the past and present has been shaped by regulations (ex: prohibition) but there is underinvestment in private sectors and not enough incentives to further develop biorenewable solutions despite a desire to have a renewable economy
implications of gene editing on the environment
can increase food yields without farmland expansion, reduced input and fuels use, carbon savings from land changes, carbon sequestering possible on saved lands, less toxic chemical use/runoff
integrated genomic institute (IGI)
centered in berkeley/parterened with USCF/davis, it is an institution that is involved with new genetic tools, research on regulations, and new applications of gene editing
main elements to attain sustainable development
conservation (less consumption of energy/nonrenewables), recycling, use of renewable energy resources, and the bioeconomy (associated with transition to renewables/husbandry)
examples of GE plants
corn: waxy corn has high amylopectin and less amylose compared to traditional yellow dent corn soybean: TALE edited soybean oil will not need trans-fat generating hydrogenation wheat: CRISPR editing increases fungal/mildew disease resistance
economic effects of GMOs
costs of production have decreased (esp in developing countries), greater flexibility in farm management, gains are distributed to farmers/consumers (benefits to consumers increase over time)
constraints on supply chain
credit and finance: integrator may need to finance both feedstock production, access to credit may lead integrator to vertically integrate, invest in other facilities, and price credit to contractor risk/uncertainty: concern about reliability of processors, tech/regulatory uncertainty, and variable product demand
designing supply chains
designed to maximize profit while taking into account price, cost, and quantity of output so that the optimal output of production gains marginal benefits from production
sustainable development
development that balances current human well-being and economic advancement with resource management for the benefit of future generations emphasizing 3 pillars- economy, society, and environment
evolution of disciplines
disciplines are born from conflict within disciplines, integration of methods, and new complex problems (cs, chem engineering) disciplines die from a lack of excitement (astrology)
genome editing applications for climate change
disease mitigation, land sparing/enhanced yield, abiotic stress tolerance, nutritional improvement
myths about GMOs
does not make a difference in yield, benefits the rich, not useful for the environment, can make a much bigger impact in the future
useful traits in genetic engineering
drought resistance, disease resistance, consumer benefits, herbicide resistance, altered growth, and yield, storage, or processing improvement
inelastic product
elasticity < 1, low responsiveness to price change due to few substitutes- most goods are inelastic in the short term bc it takes time to adjust to price changes
elastic product
elasticity > 1, high responsiveness to price change due to high number of substitutes
environmental outcomes of climate change
erratic rainfall, storm severity, more co2, increased temperature/desertification, droughts, rising seas, flooding, increased salinization
mutation breeding
exposes seeds to chemicals or radiation to generate mutants with possible disease resistance and physiological improvements- but mutations are random, not frequently desirable, and a lot of work
trends in US agriculture
farm population/labor has declines, bigger farms, stable acreage, higher yield per acre, real price/value decrease, share of agr in GDP declines
three generations of GM traits
first generation production traits: insect, disease resistance and herbicides second gen: better quality/nutrition/efficiency and tolerance to stress third gen: pharmaceuticals/industrial products in plants
established and emerging food trends
fresh tasting foods, convenient foods, fusion foods, ethnic foods, prepared home meal replacements, natural and organic, physical performance foods, and food mixtures
why use genetic editing over selective breeding?
genetic engineering allows for precise gene editing, cuts labor, time, and costs, and there are a variety of tools available
case study: golden rice
golden rice is a genetically enhanced rice variety that contains higher levels of beta-carotene/vitamin a to help with deficiencies that can cause blindness- if golden rice was introduced and adopted slowly there would be many cumulative benefits that were missed // example of the limited capacity of GM from restrictions and how this has been costly in monetary and human terms
summary of changes in agricultural landscape
greater use of modern tech, better management practices, greater industrialization of agriculture, more free trade, and change in policies to accommodate environmental/energy concerns
exampled of technological innovations
green revolution (new strains, pesticides, irrigation), GM seeds, water tech, low till agr, and integrated pest management
economic growth theory
has evolved to introduce other factors such as human capital investment, introduction of new and improved vintage capital goods, and endogenous growth
how to create transgenic plants
have a gene of interest (transgene with promoter sequence and selectable marker), introduce this into appropriate delivery system (agrobacterium/ bombardment), transform totipotent (underdeveloped-callus/flower) plant cells, verify the transgenic plant (test cross for homozygous)
target traits for plant breeding
high primary productivity, crop yield, nutritional quality (ex: golden rice), adaption to intercropping, better nitrogen fixation, efficient water use, drought resistance, resistance to pathogens/pests (bt cotton), plant architecture, elimination/tolerance of toxic compounds (roundup ready)
market conditions in agricultural markets
high rates of innovation, many small firms, inelastic demand, uncertainty, lack of flexibility/input mobility, and credit imperfection
meganucleus
highly specific homing endonuclease used to engineer plans with new DNA sequences
invisible hand
in a free market, an individual pursuing his own self-interest tends to also promote the good of his community through the invisible hand (faces criticism for being false)
threshold model
incorporated micro level decision making, heterogeneity, and dynamic processes (processes that change with time) into the adoption process
implications for agriculture
increase growth and productivity (from high demand), change/increase farmer support, industrialization of agr (brands, professionals, constracts, more diverse/expansive agr sector, change in production and trade patterns, rural development
normal good
increase in income results in less than proportional increase in consumption (bread, cheese)
luxury good
increase in income results in more than proportional increase in consumption (caviar, filet mignon)
inferior good
increase in income results in reduction in consumption (canned corn)
impacts of technological innovation on agriculture
increased global food production, improved yields of specific crops, slower expansion of cultivated lands, reduced deforestation, increase in irrigated land
innovation process
initial idea and research, development (up-scaling/testing), production, marketing, adoption and use
why it is important to project aggregate demand of food?
it is essential to predict the ability of a nation to feed itself (food security), demand for natural resources (affects land/water use), demand for other inputs, and trade impacts
transition of US agriculture policy
land and settlement policies -> farm support policies -> landscape and environmental quality policies
roles of prices
measures of scarcity, quality, and vary by time and location
elasticity
measures responsiveness of supply or demand to change in price or income, calculated by changes in supply%/price change%
types of technology/innovations
mechanical, chemical, biological, managerial, and institutional
renewable resources
natural resources that can be naturally renewed but still exhausted- sunlight, water, wind, plants, and animals that are divided between harvesting and husbandry (farming) systems
properties of demand
negatively sloped, more is demanded at lower prices, technological change creates an outward shift due to income growth
induced innovation
new technology that emerges in response to scarcity, need, or economic and social conditions
market equilibrium
occurs at the point where quantity demanded equals quantity supplied- both producers and consumers have little incentive to change
old vs new bioeconomy
old bioeconomy is based on fermentation (cheese, wine, bread, wine) and new is based on molecular biology and information technology
processes affecting agriculture
population and income growth (more demand for grain/meat), environmentalism (depletion of resources), consumerism/choice, globalization (pursuit of free trade), privatization (gov market regulation), new tech (biotech/info tech), biofuels (alt to oil with higher prices)
properties of supply
positively sloped, more is supplied at higher prices, technological change shifts supply out
solutions to US agricultural problems
price/income support (government min), crop insurance, inventory control, land set-asides (pay for farm land for conservation), and environmental regulation
what affects food demand?
prices, income, and maximum utility derived subject to income constraints
factors that affect adoption of technology
profits (total revenue vs cost), income and access to credit (how much can afford to lose), risk and uncertainty, market access and availability, education, size, and government policies (enhance and reduce)
post civil war institutional innovation
public education and outreach (USDA), collective actions (water districts, agr cooperatives), and labor supply management (unions, constractors)
new bioeconomy
relies on the discovery of dna and new genetic engineering tools- possible bc we are in a genetic revolution, the future of which depends on regulations, and less costly regulation can lead to differentiations
impacts of GMOs on yield
represents the good impact of agricultural biotech as yield has increased, lower risk of yield variability, can increase the use of complementary inputs like fertilizers
multidisciplinary research
research from multiple disciplines work independently but in parallel to analyze problems (UN task force, National Research Council)
challenges solved by biotechnology
rising food demand, falling yield growth, energy demand rising, and climate change
technology
simply defined as new ways to achieve tasks with different applications economics: changes to production function that alters relationship between inputs and outputs agr: changed in productivity of agr inputs
solutions and problems of agricultural problems
solutions to agricultural problems include price/income support, inventory control, land set asides, environmental regulation, credit subsidies problems with this: excess production, high consumer price, trade distortions, export quotas and taxes, input subsidies, and budgetary concerns
economics
studies resource allocation with several approaches- behavioral, institutional, econometric, positive and normative theory
supply and demand of technology
technology in the short run has an inelastic supply/demand but is elastic in the long run
carrying capacity
the amount of activity a resource base can sustain- depends on technology and institutions
bioeconomy and agriculture
the bioeconomy will derive the future of agriculture and enable a transition to a renewable economy as long as there are continuous increases in productivity and enlightened regulations, bioeconomy can also solve the traditional problem of low farm income
resilience
the capacity of an ecosystem to respond to a disturbance by resisting damage and recovering quickly
vertical integration
the combination in one company of two or more stages of production normally operated by separate companies so innovators produce by themselves- good because more involvement in the system can perfect it and contracting has limits of reliability/protection of knowledge
supply chain
the connected chain of all of the business entities (producer, processor) that perform or support the logistics function as a result of innovation
imitation model
the contact among individuals is the driving force behind adoption and diffusion, and will lead to an S-shaped diffusion curve- not a great model bc potential adopters are assumed to be homogenous
political economy challenge (cocoa case study)
the government will not modernize sectors because of price effect to better control the cocoa effect by reducing acres while increasing yield, growing alternative crops
what causes the current global poverty?
the hunger and nutritional deficiencies of more than 800 million people is caused because of poverty and not a lack of food produced
how do you predict aggregate demand
the key factors to consider are population growth, income growth (GDP), and trade
fermentation
the key to the traditional bioeconomy and used to produce preserved and not perishable products, expanded the use of agriculture to provide more fun/taste, expanded supply of food in other seasons which increased range of livable locations, enhances efficiency of food use
macroeconomics
the study of the macro-aggregate behavior of the overall economy, deals with unemployment, inflation, money/interest rates, investments, and savings
microeconomics
the study of the micro behavior of consumers and firms and the resulting market outcomes, deals with prices/quantities, impact of market regulations, consumer/producer welfare, monopolies, and imperfect competition
dimensions of policy research
theoretical (policies), institutional (design), empirical (impact), and political economic to overall emphasize practicality
TALEs
transcription activator-like effectors; specific dna-binding proteins that promote disease susceptibility as repeat units form helices around DNA that form a superhelix
complements
two goods where the an increase of price of one will reduce the demand for the other (bread and butter)
substitutes
two goods where the increase in price of one will increase the demand for the other (corn syrup and sugar)
molecular breeding
use DNA markers to identify disease resistant lines with mostly elite DNA- limited traits/species, can select complex traits, laborious over generations, less regulation
angus deaton
won a nobel prize in economics in 2015 from his work to link individual choices and aggregate outcomes which transformed fields of economics
