Innovation Dissemination and the Market Impacts of Drought-Tolerant Genetically Modified Rice

Drought-Tolerant (DT) rice technology is a potential tool to improve productivity in regions with insufficient or variable water supply. The impacts of DT rice adoption are analysed using the Arkansas Global Rice Model to demonstrate that DT rice would benefit the early investors in developing and adopting DT varieties. Developing countries could take advantage of the technology if widespread adoption occurs. World rice prices would decrease substantially conferring a potential benefit to consumers. Producer welfare gains are small or negative, but overall impacts may result in increased food security in poor regions of the world.