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The Economics of Biotechnology Regulation

In: Regulating Agricultural Biotechnology: Economics and Policy

Author

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  • David Zilberman

    (University of California)

Abstract

Rational regulations of transgenic products should compare their risks and benefits with the risks and benefits of alternatives. The current regulations ignore the alternatives. Political-economic considerations govern the establishment of regulatory requirements and tend to lead to overregulation. Optimal testing should balance the gains and costs of ex ante testing and ex post monitoring. Emphasis on ex ante testing to control bad products may lead to welfare losses. The ex ante testing of new transgenic products should occur mostly at the trait level. Registration requirements at the varietal level, and even the crop level, may be very costly.

Suggested Citation

  • David Zilberman, 2006. "The Economics of Biotechnology Regulation," Natural Resource Management and Policy, in: Richard E. Just & Julian M. Alston & David Zilberman (ed.), Regulating Agricultural Biotechnology: Economics and Policy, chapter 0, pages 243-261, Springer.
    • Handle: RePEc:spr:nrmchp:978-0-387-36953-2_12
    DOI: 10.1007/978-0-387-36953-2_12
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    Citations

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    Cited by:

    1. Sedjo, Roger, 2010. "How do environmental regulations affect investments in biofuel and biofuel R&D?: the case of transgenic trees," 14th ICABR Conference, June 16-18, 2010, Ravello, Italy 188107, International Consortium on Applied Bioeconomy Research (ICABR).
    2. Zilberman, David & Hochman, Gal & Sexton, Steven E., 2008. "Food Safety, the Environment, and Trade," Agricultural Distortions Working Paper Series 48637, World Bank.
    3. Cyrlene Claasen & Julia Roloff, 2012. "The Link Between Responsibility and Legitimacy: The Case of De Beers in Namibia," Journal of Business Ethics, Springer, vol. 107(3), pages 379-398, May.
    4. Robin Roff, 2009. "No alternative? The politics and history of non-GMO certification," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 26(4), pages 351-363, December.
    5. Gal Hochman & Gordon C. Rausser & David Zilberman, 2011. "US versus EU Biotechnology Regulations and Comparative Advantage: Implications for Future Conflicts and Trade," Chapters, in: David Vogel & Johan Swinnen (ed.), Transatlantic Regulatory Cooperation, chapter 7, Edward Elgar Publishing.
    6. Zilberman, David & Graff, Gregory & Hochman, Gal & Kaplan, Scott, 2015. "The Political Economy of Biotechnology," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 64(04), December.
    7. Beckmann, Volker & Soregaroli, Claudio & Wesseler, Justus, 2006. "Governing the Co-existence of GM Crops: Ex-Ante Regulation and Ex-Post Liability under Uncertainty and Irreversibility," Institutional Change in Agriculture and Natural Resources Discussion Papers 18845, Humboldt University Berlin, Department of Agricultural Economics.
    8. 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.
    9. Paulina Kubisz & Graham Dalton & Edward Majewski & Kinga Pogodzińska, 2021. "Facts and Myths about GM Food—The Case of Poland," Agriculture, MDPI, vol. 11(8), pages 1-16, August.
    10. Gray, Emily M. & Ahmadi-Esfahani, Fredoun Z., 2008. "Uncertainty aversion in Australian regulation of agricultural gene technology," 2008 Conference (52nd), February 5-8, 2008, Canberra, Australia 6045, Australian Agricultural and Resource Economics Society.
    11. Pardey, Philip G. & James, Jennifer S. & Alston, Julian M. & Wood, Stanley & Koo, Bonwoo & Binenbaum, Eran & Hurley, Terrance M. & Glewwe, Paul & Mayer, Jorge & Jones, Richard & De Groote, Hugo & Kana, 2007. "Science, Technology and Skills," Reports 136256, University of Minnesota, International Science and Technology Practice and Policy.
    12. Liu, Elaine M. & Huang, JiKun, 2013. "Risk preferences and pesticide use by cotton farmers in China," Journal of Development Economics, Elsevier, vol. 103(C), pages 202-215.
    13. Dawson, Ian K. & Hedley, Peter E. & Guarino, Luigi & Jaenicke, Hannah, 2009. "Does biotechnology have a role in the promotion of underutilised crops?," Food Policy, Elsevier, vol. 34(4), pages 319-328, August.
    14. Clem Tisdell, 2013. "Economics, ecology and GMOs: sustainability, precaution and related issues," Chapters, in: M. A. Quaddus & M. A.B. Siddique (ed.), Handbook of Sustainable Development Planning, chapter 5, pages 91-118, Edward Elgar Publishing.
    15. Pray, Carl E. & Nagarajan, Latha, 2012. "Innovation and research by private agribusiness in India:," IFPRI discussion papers 1181, International Food Policy Research Institute (IFPRI).
    16. Gray, Emily & Ancev, Tihomir & Drynan, Ross, 2011. "Coexistence of GM and non-GM crops with endogenously determined separation," Ecological Economics, Elsevier, vol. 70(12), pages 2486-2493.
    17. Shakya, Sumadhur & Wilson, William W. & Dahl, Bruce L., 2012. "Valuing New Random GM Traits: The Case of Drought Tolerant Wheat," Agribusiness & Applied Economics Report 128033, North Dakota State University, Department of Agribusiness and Applied Economics.

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