In medio stat virtus: coexistence policies for GM and non-GM production in spatial equilibrium
Economics, Center for Agricultural and Rural Development
Journal or Book Title
European Review of Agricultural Economics
First Page or Article ID Number
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.
Moschini, Giancarlo, "In medio stat virtus: coexistence policies for GM and non-GM production in spatial equilibrium" (2015). Economics Publications. 180.