Naranjilla cultivation is highly profitable in many parts of the Andean foothills in Colombia and Ecuador. Its susceptibility to soil-borne diseases, however, lowers its economic benefits, reduces sustainability of production and increases its contribution to environmental degradation. This paper presents an analysis of the potential market and non-market benefits of research that developed and tested the grafting of common naranjilla onto disease-resistant rootstock. Grafting reduces the need for pesticide application and increases the longevity and sustainability of the plant. An economic surplus approach, carefully calibrated to reflect the realities of naranjilla production, was employed to show the large benefits from such research. Environmental and health benefits are very close in magnitude to market-mediated surplus gains. The results show substantial potential benefits from an outreach program to diffuse the new technology.

A procedure is described for evaluating poultry and egg research projects. A peer review questionnaire and benefit-cost analysis are utilized incorporating elasticities from an econometric model for poultry and eggs. Production, cost, and price changes are used to calculate changes in producer surplus and net economic surplus for a set of privately funded publicly conducted research projects.

Colleges of veterinary medicine are often asked to provide evidence of the economic impacts of their activities. This paper presents methods for evaluating a veterinary college and applies them to the Virginia-Maryland Regional College of Veterinary Medicine. It assesses short-run impacts on income and employment using input-output analysis. Long-run benefits are estimated using a combination of economic surplus analysis, travel cost analysis and demand estimation, animal-owner willingness-to-pay based on a survey of practicing veterinarians, and earnings differentials.

We calculate the welfare effects of the Washington State University (WSU) wheat breeding programs for producers and consumers in Washington, Oregon, Idaho, and the United States, and for importers of U.S. wheat. We develop a partial equilibrium multiregion, multiproduct, multivariety trade model for wheat that provides consumer, producer, and total surplus for each wheat class and region. Our results provide evidence suggesting that WSU wheat breeding programs have increased welfare for the state of Washington, the United States, and importers of U.S. wheat.

Small research firms developing biotechnology applications often focus on establishing intellectual property rights (IPRs), which can then be sold to more established firms with existing market channels. This paper presents a method for valuing the IPRs for an innovation that lowers product production costs below those associated with the patented process of a monopolist. The application to Glucocerebrosidase enzyme from transgenic tobacco suggests an IPRs value of about $1.75 billion. Despite the innovator's market power, significant surplus gains also accrue to consumers. Further, U.S. antitrust laws that prohibit IPRs acquisition by the current monopolist increase consumer welfare by almost 50%.

An examination of the economic impacts of reduced milk production associated with Johne's disease on Johne's-positive and Johne's-negative dairy operations indicated that, if Johne's disease had not existed in US dairy cows in 1996, then the economic surplus of Johne's-negative operations would have been $600 million±$530 million lower, while the economic surplus of Johne's-positive operations would have been higher by $28 million±$79 million, which was not significantly different from zero. The data available for projecting changes in surplus were not sufficiently precise to allow an exact statement on whether Johne's-positive operations would have been better or worse off economically, in terms of the value received for producing more milk if they had not been affected by Johne's disease. The changes in producer surplus, based upon eliminating specific epidemiological risk factors for Johne's disease, were disaggregated between Johne's-positive dairy operations exposed to the risk factor and all other US dairy operations. Eliminating the risk factor of having any cows not born on the operation would have had a significant positive effect on the economic surplus of Johne's-positive operations that had any cows not born on the operation.

The goal of this study was to measure the economic impacts of reduced milk production associated with papillomatous digital dermatitis (PDD) in dairy cows in the USA, and of specific risk factors for PDD, in 1996. The method applied was an economic-welfare analysis of producer and consumer surplus, with the GUM Workbench used to analyse uncertainties in the measurements. Reduced milk production associated with PDD was found to reduce consumer surplus by $750 million±$580 million, and to increase the economic surplus of producers by $560 million±$470 million, with a net economic loss of $190 million±$130 million. An examination of the economic effects of specific epidemiologic risk factors for PDD showed that having dairy cows that were not born on the operation had important economic consequences associated with the disease, as did the type of land to which dairy cows had access during the winter months and the type of flooring on which cows walked. Washing hoof-trimming equipment between cows was an important biosecurity measure that was associated with reduced PDD. The epidemiologic model used also implicated hoof trimmers who trimmed cattle hooves on other operations as having an important economic impact associated with this disease, although this finding may have been erroneous.

An examination of the economic effects of epidemiologic risk factors for Johne's disease identified regional and herd size differences as having the greatest impact. Having dairy cows that were not born on the operation was the most important factor over which individual producers had the most immediate control. Economic consequences associated with using multiple-cow-maternity housing and multiple-preweaned-calf housing were not statistically significant. Economic welfare analysis was applied, and the GUM Workbench was used to analyse uncertainties in the estimates of the economic impacts.

Accurately assessing the economic impacts of diseases and other factors that affect milk production requires that the demand for milk be taken into account. Because demand for milk in the USA is relatively inelastic (i.e., consumers generally purchase a somewhat fixed amount over a given time frame, regardless of fluctuations in price), consumers tend to reap much of the benefit of enhanced production. An examination of the economic impacts of Johne's disease indicated that reduced milk production, associated with the determination of dairy operations as Johne's-positive, reduced consumer surplus by $770 million ± $690 million, and resulted in a total loss of $200 million ± $160 million to the US economy in 1996. Most of the economic surplus lost by consumers was transferred to producers, whose economic surplus increased by $570 million ± $550 million as a result of the reduced milk production associated with Johne's disease. Uncertainty analysis showed that the estimated reduction in milk production on Johne's-positive dairy operations accounted for most of the uncertainty in the economic-impact estimates. If Johne's disease had not been present on US dairy operations, then an additional 580 million ±460 million kg of milk would have been produced, but the price would have fallen by 1·1±1·0 cents/kg, and the total value of the milk would have decreased by $580 million ± $560 million.