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On the regulation of spatial externalities: coexistence between GM and conventional crops in the EU and the ‘newcomer principle’

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  • Ceddia, Michele Graziano
  • Bartlett, Mark
  • Lucia, Caterina De
  • Perrings, Charles

Abstract

Pollen-mediated gene flow is one of the main concerns associated with the introduction of genetically modified (GM) crops. Should a premium for non-GM varieties emerge on the market, ‘contamination’ by GM pollen would generate a revenue loss for growers of non-GM varieties. This paper analyses the problem of pollen-mediated gene flow as a particular type of production externality. The model, although simple, provides useful insights into coexistence policies. Following on from this and taking GM herbicide-tolerant oilseed rape (Brassica napus) as a model crop, a Monte Carlo simulation is used to generate data and then estimate the effect of several important policy variables (including width of buffer zones and spatial aggregation) on the magnitude of the externality associated with pollen-mediated gene flow.

Suggested Citation

  • Ceddia, Michele Graziano & Bartlett, Mark & Lucia, Caterina De & Perrings, Charles, 2011. "On the regulation of spatial externalities: coexistence between GM and conventional crops in the EU and the ‘newcomer principle’," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 55(1), pages 1-18.
    • Handle: RePEc:ags:aareaj:176742
    DOI: 10.22004/ag.econ.176742
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    References listed on IDEAS

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    5. Ceddia, M. Graziano & Bartlett, Mark & Perrings, Charles, 2007. "Landscape gene flow, coexistence and threshold effect: The case of genetically modified herbicide tolerant oilseed rape (Brassica napus)," Ecological Modelling, Elsevier, vol. 205(1), pages 169-180.
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    Cited by:

    1. Groeneveld, Rolf A. & Wesseler, Justus & Berentsen, Paul B.M., 2013. "Dominos in the dairy: An analysis of transgenic maize in Dutch dairy farming," Ecological Economics, Elsevier, vol. 86(C), pages 107-116.
    2. Breustedt, Gunnar & Latacz-Lohmann, Uwe & Müller-Scheeßel, Jörg, 2013. "Impact of alternative information requirements on the coexistence of genetically modified (GM) and non-GM oilseed rape in the EU," Ecological Economics, Elsevier, vol. 93(C), pages 104-115.
    3. Kristina Hubbard & Neva Hassanein, 2013. "Confronting coexistence in the United States: organic agriculture, genetic engineering, and the case of Roundup Ready ® alfalfa," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 30(3), pages 325-335, September.
    4. Yan Jin & Dušan Drabik, 2022. "CRISPR Rice vs conventional rice dilemma of a Chinese farmer," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 66(2), pages 424-446, April.

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