Title

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

Campus Units

Economics, Center for Agricultural and Rural Development

Document Type

Article

Publication Version

Submitted Manuscript

Publication Date

2015

Journal or Book Title

European Review of Agricultural Economics

Volume

42

Issue

5

First Page or Article ID Number

851

Last Page

874

DOI

10.1093/erae/jbu040

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.

JEL Classification

Q18

Comments

This is a working paper of an article from European Review of Agricultural Economics 42 (2015): 851, doi: 10.1093/erae/jbu040.