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
Recommended Citation
Moschini, Giancarlo, "In medio stat virtus: coexistence policies for GM and non-GM production in spatial equilibrium" (2015). Economics Publications. 180.
https://lib.dr.iastate.edu/econ_las_pubs/180
Comments
This is a working paper of an article from European Review of Agricultural Economics 42 (2015): 851, doi: 10.1093/erae/jbu040.