Title

Labeling Regulations and Segregation of First- and Second-Generation GM Products: Innovation Incentives and Welfare Effects

Campus Units

Economics

Document Type

Article

Publication Version

Submitted Manuscript

Publication Date

2006

Journal or Book Title

Regulating Agricultural Biotechnology: Economics and Policy

Volume

30

Editors

Richard E. Just, Julian M. Alston and David Zilberman

Publisher

Springer US

Place of Publication

New York, NY

First Page or Article ID Number

263

Last Page

281

DOI

10.1007/978-0-387-36953-2_13

Abstract

We review some of the most significant issues and results on the economic effects of genetically modified (GM) product innovation, with emphasis on the question of GM labeling and the need for costly segregation and identity preservation activities. The analysis is organized around an explicit model that can accommodate the features of both first-generation and second-generation GM products. The model accounts for the proprietary nature of GM innovations and for the critical role of consumer preferences vis-à-vis GM products, as well as for the impacts of segregation and identity preservation and the effects of a mandatory GM labeling regulation. We also investigate briefly a novel question in this setting, the choice of “research direction” when both cost-reducing and quality-enhancing GM innovations are feasible.

Comments

This is a working paper of a book chapter from Regulating Agricultural Biotechnology: Economics and Policy 30 (2006): 263, doi: 10.1007/978-0-387-36953-2_13.