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In medio stat virtus: coexistence policies for GM and non-GM production in spatial equilibrium

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  • GianCarlo Moschini

Abstract

This article develops a spatial equilibrium model suitable to analyse the economic impacts of measures (such as isolation distances and buffer zones) meant to ensure coexistence between genetically modified (GM) and non-GM crops. We show that policies that put the cost of such measures exclusively on GM producers lead to a competitive equilibrium that is biased against GM products (relative to the welfare maximising allocation). Efficient allocation is restored if the cost of implementing coexistence measures is shared equally between adjacent GM and non-GM farms.

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  • GianCarlo Moschini, 2015. "In medio stat virtus: coexistence policies for GM and non-GM production in spatial equilibrium," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 42(5), pages 851-874.
    • Handle: RePEc:oup:erevae:v:42:y:2015:i:5:p:851-874.
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    File URL: http://hdl.handle.net/10.1093/erae/jbu040
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    1. GianCarlo Moschini & Harun Bulut & Luigi Cembalo, 2005. "On the Segregation of Genetically Modified, Conventional and Organic Products in European Agriculture: A Multi‐market Equilibrium Analysis," Journal of Agricultural Economics, Wiley Blackwell, vol. 56(3), pages 347-372, December.
    2. Marion Desquilbet & David S. Bullock, 2003. "Who Pays the Costs of Non-GMO Segregation and Identity Preservation?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 91(3), pages 656-672.
    3. GianCarlo Moschini, 2008. "Biotechnology and the development of food markets: retrospect and prospects," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 35(3), pages 331-355, September.
    4. Marion Desquilbet & Sylvaine Poret, 2014. "How do GM/non GM coexistence regulations affect markets and welfare?," European Journal of Law and Economics, Springer, vol. 37(1), pages 51-82, February.
    5. Harvey E. Lapan & Giancarlo Moschini, 2004. "Innovation and Trade with Endogenous Market Failure: The Case of Genetically Modified Products," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(3), pages 634-648.
    6. Mussa, Michael & Rosen, Sherwin, 1978. "Monopoly and product quality," Journal of Economic Theory, Elsevier, vol. 18(2), pages 301-317, August.
    7. Munro, Alistair, 2008. "The spatial impact of genetically modified crops," Ecological Economics, Elsevier, vol. 67(4), pages 658-666, November.
    8. Demont, Matty & Daems, Wim & Dillen, Koen & Mathijs, Erik & Sausse, Christophe & Tollens, Eric, 2008. "Regulating coexistence in Europe: Beware of the domino-effect!," Ecological Economics, Elsevier, vol. 64(4), pages 683-689, February.
    9. Volker Beckmann & Justus Wesseler, 2007. "Spatial Dimension of Externalities and the Coase Theorem: Implications for Co-existence of Transgenic Crops," Springer Books, in: Wim Heijman (ed.), Regional Externalities, chapter 11, pages 223-242, Springer.
    10. Marta Czarnak-Klos & Emilio Rodriguez Cerezo, 2010. "European Coexistence Bureau (ECoB) - Best Practice Document for Coexistence of Genetically Modified Crops with Conventional and Organic Farming. 1. Maize Crop Production," JRC Research Reports JRC59319, Joint Research Centre.
    11. Volker Beckmann & Claudio Soregaroli & Justus Wesseler, 2006. "Coexistence Rules and Regulations in the European Union," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 88(5), pages 1193-1199.
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    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.

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