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Public Regulation of Agricultural Biotechnology Field Tests: Economic Implications of Alternative Approaches

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  • Bruce A. Larson
  • Mary K. Knudson

Abstract

Federal oversight of agricultural biotechnology field testing is based on public concerns that unknown consequences could arise from such tests, and that firms may not adequately consider the public consequences of their research and development activities. In this paper, four general types of ex ante and ex post approaches to manage public risks from field testing are explored. The analysis shows that the approaches are least effective at facilitating the research process yet controlling public risks when the research firm is small in size and potential damages exceed the value of the firm.

Suggested Citation

  • Bruce A. Larson & Mary K. Knudson, 1991. "Public Regulation of Agricultural Biotechnology Field Tests: Economic Implications of Alternative Approaches," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 73(4), pages 1074-1082.
    • Handle: RePEc:oup:ajagec:v:73:y:1991:i:4:p:1074-1082.
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    File URL: http://hdl.handle.net/10.2307/1242435
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    Cited by:

    1. Caswell, Margriet F. & Fuglie, Keith O. & Klotz, Cassandra A., 1994. "Agricultural Biotechnology: An Economic Perspective," Agricultural Economic Reports 262025, United States Department of Agriculture, Economic Research Service.
    2. Artuso, A., 2003. "Risk perceptions, endogenous demand and regulation of agricultural biotechnology," Food Policy, Elsevier, vol. 28(2), pages 131-145, April.
    3. Maredia, Mywish K., 1998. "The Economics Of Biosafety: Implications For Biotechnology In Developing Countries," Staff Paper Series 11768, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    4. Beckmann, Volker & Soregaroli, Claudio & Wesseler, Justus, 2010. "Ex-ante regulation and ex-post liability under uncertainty and irreversibility: governing the coexistence of GM crops," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 4, pages 1-33.
    5. Kalaitzandonakes, Nicholas G. & Bjornson, Bruce, 1997. "Vertical And Horizontal Coordination In The Agro-Biotechnology Industry: Evidence And Implications," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 29(1), pages 1-11, July.

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