Title

Pharmaceutical and Industrial Traits in Genetically Modified Crops: Coexistence with Conventional Agriculture

Campus Units

Economics, Center for Agricultural and Rural Development

Document Type

Article

Publication Version

Submitted Manuscript

Publication Date

2006

Journal or Book Title

American Journal of Agricultural Economics

Volume

88

Issue

5

First Page or Article ID Number

1184

Last Page

1192

DOI

10.1111/j.1467-8276.2006.00931.x

Abstract

The first ten years of commercial experience with genetically modified (GM) crops must be considered a success, albeit a qualified one. Adoption has been remarkable: first commercially planted in 1996, world GM crop planting reached 220 million acres in 2005 (James 2005). But large-scale adoption has been confined to a few crops grown in only a few countries, and the currently widely grown GM crops are all based on only a handful of so-called input traits that confer herbicide tolerance and/or pest resistance. Furthermore, this technology has been met with hostility by some consumer groups and segments of the public. And, the introduction of GM crops means that supplying non-GM products now requires (relative to the pre-innovation situation) additional costly identity preservation and segregation activities (Bullock and Desquilbet 2002). Thus, the innovation process has, in this context, brought about a new market failure, an externality on the production of conventional (non-GM) products (Lapan and Moschini 2004). Such unintended economic implications of the introduction of GM crops are central to the current debate about the “coexistence” of GM and non-GM agriculture.

JEL Classification

L65, Q16

Comments

This is a working paper of an article from American Journal of Agricultural Economics 88 (2006): 1184, doi: 10.1111/j.1467-8276.2006.00931.x.