The Potential Impact of Tobacco Biopharming: The Case of Human Serum Albumin |
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| Authors: | Genti Kostandini Bradford F. Mills George W. Norton |
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| Affiliation: | Genti Kostandini is graduate research assistant, Bradford F. Mills is associate professor, and George W. Norton is professor at the Department of Agricultural and Applied Economics, Virginia Polytechnic Institute and State University, Blacksburg, VA. |
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| Abstract: | Biopharming stands to significantly expand the uses of many agricultural crops. This article examines the potential size and distribution of welfare gains from biopharming transgenic tobacco as a source of human serum albumin (HSA) using an economic surplus model under imperfect competition. The results suggest that HSA from transgenic tobacco will generate annual profits for the innovating firm of between $25 million and $49 million. On the other hand, consumers are unlikely to benefit during the patent life of the product given the innovator's market power. |
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| Keywords: | biopharming economic surplus imperfect competition transgenic tobacco |
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