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The Unintended Consequences of Technological Change: Winners and Losers from GM Technologies and the Policy Response in the Organic Food Market

Author

Listed:
  • Stuart Smyth

    (Department of Bioresource Policy, Business and Economics, University of Saskatchewan, Saskatoon, SK S7N 5A8, Canada)

  • William Kerr

    (Department of Bioresource Policy, Business and Economics, University of Saskatchewan, Saskatoon, SK S7N 5A8, Canada)

  • Peter W. B. Phillips

    (Johnson-Shoyama School of Public Policy, University of Saskatchewan, Saskatoon, SK S7N 5B8, Canada)

Abstract

It is often said that innovations create winners and losers. All innovations are somewhat disruptive, but some have more distributed effects. We have a sense of who the winners are and how much they gain. Yet, how much do losers actually lose? Organic farmers frequently like to publicly announce that they are the losers following the commercialization of genetically modified (GM) crops, yet consumers in search of non-GM products have helped increase demand for organic products, something that would not have occurred in the absence of GM crops. Are organic farmers really losers? This article lays out the argument that were it not for the commercialization of GM crop varieties in the mid-1990s, organic production and food sectors would not be at the level they enjoy today. That is, the commercialization of GM crops has made the organic industry better off than had GM crops not been commercialized. Theoretical modelling of the organic benefits is complemented by supportive market data. The article concludes that in spite of numerous vocal offerings about the adverse impacts suffered by the organic industry due to GM crop production, the organic industry has gained significantly from that which they vociferously criticize.

Suggested Citation

  • Stuart Smyth & William Kerr & Peter W. B. Phillips, 2015. "The Unintended Consequences of Technological Change: Winners and Losers from GM Technologies and the Policy Response in the Organic Food Market," Sustainability, MDPI, vol. 7(6), pages 1-17, June.
    • Handle: RePEc:gam:jsusta:v:7:y:2015:i:6:p:7667-7683:d:51235
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    References listed on IDEAS

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    1. Stuart J. Smyth & Peter W.B. Phillips & David Castle (ed.), 2014. "Handbook on Agriculture, Biotechnology and Development," Books, Edward Elgar Publishing, number 14629.
    2. William A. Kerr, 2010. "What is New in Protectionism? Consumers, Cranks, and Captives," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 58(1), pages 5-22, March.
    3. James D. Gaisford & Jill E. Hobbs & William A. Kerr & Nicholas Perdikis, 2001. "The Economics of Biotechnology," Books, Edward Elgar Publishing, number 2305.
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    Cited by:

    1. Jonas Kathage & Manuel Gómez-Barbero & Emilio Rodríguez-Cerezo, 2016. "Framework for assessing the socio-economic impacts of Bt maize cultivation," JRC Research Reports JRC103197, Joint Research Centre.
    2. Pavleska, Marija & Kerr, William A., 2020. "Linking investment decisions and future food security to the regulation of genetic-based technologies," Technological Forecasting and Social Change, Elsevier, vol. 153(C).

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