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Biodiversity and Optimal Policies Towards R&D and the Growth of Genetically Modified Crops

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  • Alistair Ulph
  • Lucy O'Shea

Abstract

In this paper we provide a simple model illustrating the possible nature ofgovernment policy with regards to genetic modification, taking into accountits impact on the environment. We show that it is necessary not only tointervene in the growing of crops, but also to intervene in R&D througha tax on the adoption of new GM technology. Without intervention at bothlevels, both the cultivation of GM crops and the rate of innovation in GM willexceed their socially optimal levels. Copyright Kluwer Academic Publishers 2002

Suggested Citation

  • Alistair Ulph & Lucy O'Shea, 2002. "Biodiversity and Optimal Policies Towards R&D and the Growth of Genetically Modified Crops," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 22(4), pages 505-520, August.
    • Handle: RePEc:kap:enreec:v:22:y:2002:i:4:p:505-520
    DOI: 10.1023/A:1019843425947
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    1. Orr, Lloyd, 1976. "Incentive for Innovation as the Basis for Effluent Charge Strategy," American Economic Review, American Economic Association, vol. 66(2), pages 441-447, May.
    2. Downing, Paul B. & White, Lawrence J., 1986. "Innovation in pollution control," Journal of Environmental Economics and Management, Elsevier, vol. 13(1), pages 18-29, March.
    3. Milliman, Scott R. & Prince, Raymond, 1989. "Firm incentives to promote technological change in pollution control," Journal of Environmental Economics and Management, Elsevier, vol. 17(3), pages 247-265, November.
    4. Malueg, David A., 1989. "Emission credit trading and the incentive to adopt new pollution abatement technology," Journal of Environmental Economics and Management, Elsevier, vol. 16(1), pages 52-57, January.
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    Cited by:

    1. Deepthi Kolady & William Lesser, 2012. "Genetically-engineered crops and their effects on varietal diversity: a case of Bt eggplant in India," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 29(1), pages 3-15, March.

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    Keywords

    biodiversity; crops; optimal R&D;
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