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Spatial Dimension of Externalities and the Coase Theorem: Implications for Co-existence of Transgenic Crops

In: Regional Externalities

Author

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  • Volker Beckmann

    (Humboldt University of Berlin)

  • Justus Wesseler

    (Wageningen University)

Abstract

Adopters of transgenic crops produce a negative externality for producers of transgenic free crops through potential pollen flow. Producers of transgenic free crops produce a negative externality for growers of transgenic crops if they call for keeping a minimum distance. This chapter examines spatial implications of co-existence of transgenic crops from the perspective of Ronald Coase’s influential paper “The Problem of Social Cost” published in 1960. First, the problem of co-existence will be assessed as a problem of social cost. Second, we discuss the impact of the distribution of different property rights on the adoption of transgenic crops. Third, we show that allocations of property rights result in different spatial agglomeration of transgenic and non-transgenic crops.

Suggested Citation

  • 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.
    • Handle: RePEc:spr:sprchp:978-3-540-35484-0_11
    DOI: 10.1007/978-3-540-35484-0_11
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    References listed on IDEAS

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    1. Ronald H. Coase, 2008. "The Institutional Structure of Production," Springer Books, in: Claude Ménard & Mary M. Shirley (ed.), Handbook of New Institutional Economics, chapter 2, pages 31-39, Springer.
    2. John Crespi & Stéphan Marette, 2003. "“Does Contain” vs. “Does Not Contain”: Does it Matter which GMO Label is Used?," European Journal of Law and Economics, Springer, vol. 16(3), pages 327-344, November.
    3. Jung, Chulho & Krutilla, Kerry & Kip Viscusi, W. & Boyd, Roy, 1995. "The coase theorem in rent-seeking society," International Review of Law and Economics, Elsevier, vol. 15(3), pages 259-268, September.
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    6. Richard A. Posner, 1993. "Ronald Coase and Methodology," Journal of Economic Perspectives, American Economic Association, vol. 7(4), pages 195-210, Fall.
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    Citations

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    Cited by:

    1. 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.
    2. Mattia C. Mancini & Kent Kovacs & Eric Wailes & Jennie Popp, 2016. "Addressing the Externalities from Genetically Modified Pollen Drift on a Heterogeneous Landscape," Land, MDPI, vol. 5(4), pages 1-18, October.
    3. Groeneveld, Rolf A. & Wesseler, Justus & Berentsen, Paul B.M., 2013. "Dominos in the dairy: An analysis of transgenic maize in Dutch dairy farming," Ecological Economics, Elsevier, vol. 86(C), pages 107-116.
    4. David J. Lewis & Bradford L. Barham & Brian Robinson, 2011. "Are There Spatial Spillovers in the Adoption of Clean Technology? The Case of Organic Dairy Farming," Land Economics, University of Wisconsin Press, vol. 87(2), pages 250-267.
    5. Skevas, Theodoros & Fevereiro, Pedro & Wesseler, Justus, 2010. "Coexistence regulations and agriculture production: A case study of five Bt maize producers in Portugal," Ecological Economics, Elsevier, vol. 69(12), pages 2402-2408, October.
    6. Demont, Matty & Daems, W. & Dillen, Koen & Mathijs, Erik & Sausse, C. & Tollens, Eric, 2008. "Economics of spatial coexistence of genetically modified and conventional crops: Oilseed rape in Central France," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 43650, European Association of Agricultural Economists.
    7. Consmuller, Nicola & Beckmann, Volker & Schleyer, Christian, 2008. "The Role of Coordination and Cooperation for Bt-maize cultivation in Brandenburg, Germany," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 43841, European Association of Agricultural Economists.
    8. Boucekkine, Raouf & Fabbri, Giorgio & Federico, Salvatore & Gozzi, Fausto, 2022. "A dynamic theory of spatial externalities," Games and Economic Behavior, Elsevier, vol. 132(C), pages 133-165.
    9. Skevas, Theodoros & Wesseler, Justus & Fevereiro, Pedro, 2009. "Coping with ex-ante regulations for planting Bt maize: the Portuguese experience," MPRA Paper 25609, University Library of Munich, Germany.
    10. 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.
    11. Steven G. Medema, 2020. "The Coase Theorem at Sixty," Journal of Economic Literature, American Economic Association, vol. 58(4), pages 1045-1128, December.
    12. Lewis, David J. & Barham, Bradford L. & Zimmerer, Karl S., 2008. "Spatial Externalities in Agriculture: Empirical Analysis, Statistical Identification, and Policy Implications," World Development, Elsevier, vol. 36(10), pages 1813-1829, October.
    13. 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.
    14. 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.
    15. Ambec, Stefan & Langinier, Corinne & Marcoul, Phillipe, 2011. "Spatial Efficiency of Genetically Modified and Organic Crops," Working Papers 2011-11, University of Alberta, Department of Economics.
    16. Demont, Matty & Daems, W. & Dillen, Koen & Mathijs, Erik & Sausse, C. & Tollens, Eric, 2008. "Are EU spatial ex ante coexistence regulations proportional?," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44191, European Association of Agricultural Economists.
    17. Elizabeth Hoffman & Matthew L. Spitzer, 2011. "The Enduring Power of Coase," Journal of Law and Economics, University of Chicago Press, vol. 54(S4), pages 63-76.
    18. Breustedt, Gunnar & Latacz-Lohmann, Uwe & Müller-Scheeßel, Jörg, 2013. "Impact of alternative information requirements on the coexistence of genetically modified (GM) and non-GM oilseed rape in the EU," Ecological Economics, Elsevier, vol. 93(C), pages 104-115.
    19. Rolf A. Groeneveld & Erik Ansink & Clemens C.M. Van de Wiel & Justus Wesseler, 2011. "Benefits and Costs of Biologically Contained Genetically Modified Tomatoes and Eggplants in Italy and Spain," Sustainability, MDPI, vol. 3(8), pages 1-17, August.
    20. 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.
    21. Demont, Matty & Dillen, Koen & Daems, Wim & Sausse, Christophe & Tollens, Eric & Mathijs, Erik, 2009. "On the proportionality of EU spatial ex ante coexistence regulations," Food Policy, Elsevier, vol. 34(6), pages 508-518, December.
    22. E.-A. Nuppenau & T.S Amjath Babu, 2009. "Apples compared to Apples: Attitudes towards cisgenic and transgenic breeds," Journal of Socio-Economics in Agriculture (Until 2015: Yearbook of Socioeconomics in Agriculture), Swiss Society for Agricultural Economics and Rural Sociology, vol. 2(1), pages 113-142.
    23. Wesseler, Justus, 2014. "Biotechnologies and agrifood strategies: opportunities, threats and economic implications," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), vol. 3(3), pages 1-18, December.

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