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Coexistence regulations and agriculture production: A case study of five Bt maize producers in Portugal

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  • Skevas, Theodoros
  • Fevereiro, Pedro
  • Wesseler, Justus

Abstract

In 1998, Genetically Modified (GM) maize entered European Agriculture. After the publication of the European Commission's guidelines on coexistence in 2003, Portugal developed ex-ante regulatory and ex-post tort liability rules on the coexistence of GM and non-GM maize crops. There is an on-going debate on the extent to which the coexistence policies affect adoption. In this study we measure the costs and benefits of planting GM maize as a member of a cooperative. All group members achieved a higher gross margin by planting GM maize rather than non-GM maize on their farms. Group members did not face any ex-post liability costs and had zero ex-ante regulatory costs as they could easily internalize the ex-ante coexistence regulations. The results show that coexistence regulations such as informing neighbors or keeping minimum distances do not necessarily lead to increased production costs provided they are flexible enough.

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Bibliographic Info

Article provided by Elsevier in its journal Ecological Economics.

Volume (Year): 69 (2010)
Issue (Month): 12 (October)
Pages: 2402-2408

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Handle: RePEc:eee:ecolec:v:69:y:2010:i:12:p:2402-2408

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Web page: http://www.elsevier.com/locate/ecolecon

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Keywords: GM maize Coexistence Ex-ante costs Ex-post liability costs Cooperative Portugal;

References

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  1. Demont, Matty & Dillen, Koen & Daems, Wim & Sausse, Christophe & Tollens, Eric & Mathijs, Erik, 2009. "On the proportionality of EU spatial ex ante coexistence regulations," Food Policy, Elsevier, vol. 34(6), pages 508-518, December.
  2. GianCarlo Moschini, 2008. "Biotechnology and the development of food markets: retrospect and prospects," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 35(3), pages 331-355, September.
  3. Desquilbet, Marion & Bullock, David S., 2002. "Who pays the costs of non-GMO segregation and identity preservation?," 2002 International Congress, August 28-31, 2002, Zaragoza, Spain 24973, European Association of Agricultural Economists.
  4. Volker Beckmann & Claudio Soregaroli & Justus Wesseler, 2006. "Coexistence Rules and Regulations in the European Union," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 88(5), pages 1193-1199.
  5. Andrei Shleifer, 2010. "Efficient Regulation," NBER Chapters, in: Regulation vs. Litigation: Perspectives from Economics and Law, pages 27-43 National Bureau of Economic Research, Inc.
  6. Beckmann, Volker & Soregaroli, Claudio & Wesseler, Justus, 2010. "Ex-ante regulation and ex-post liability under uncertainty and irreversibility: governing the coexistence of GM crops," Economics - The Open-Access, Open-Assessment E-Journal, Kiel Institute for the World Economy, vol. 4(9), pages 1-33.
  7. Murray Rothbard, 1982. "Law, Property Rights, and Air Pollution," Cato Journal, Cato Journal, Cato Institute, vol. 2(1), pages 55-99, Spring.
  8. Demont, Matty & Daems, Wim & Dillen, Koen & Mathijs, Erik & Sausse, Christophe & Tollens, Eric, 2008. "Regulating coexistence in Europe: Beware of the domino-effect!," Ecological Economics, Elsevier, vol. 64(4), pages 683-689, February.
  9. Desquilbet, Marion & Bullock, David S., 2010. "On the proportionality of EU spatial ex ante coexistence regulations: A comment," Food Policy, Elsevier, vol. 35(1), pages 87-90, February.
  10. Wesseler, Justus & Scatasta, Sara & Nillesen, Eleonora, 2007. "The maximum incremental social tolerable irreversible costs (MISTICs) and other benefits and costs of introducing transgenic maize in the EU-15," MPRA Paper 33229, University Library of Munich, Germany.
  11. Consmuller, Nicola & Beckmann, Volker & Petrick, Martin, 2009. "The adoption of Bt-maize in Germany: An econometric analysis," 49th Annual Conference, Kiel, Germany, September 30-October 2, 2009 53262, German Association of Agricultural Economists (GEWISOLA).
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Cited by:
  1. Ambec, Stefan & Langinier, Corinne & Marcoul, Phillipe, 2011. "Spatial Efficiency of Genetically Modified and Organic Crops," Working Papers 2011-11, University of Alberta, Department of Economics.
  2. Consmuller, Nicola & Beckmann, Volker & Petrick, Martin, 2012. "Identifying driving factors for the establishment of cooperative GMO-free zones in Germany," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126531, International Association of Agricultural Economists.
  3. Consmuller, Nicola & Beckmann, Volker & Petrick, Martin, 2011. "Towards GMO-free landscapes? Identifying driving factors for the establishment of cooperative GMO-free zones in Germany," 51st Annual Conference, Halle, Germany, September 28-30, 2011 114493, German Association of Agricultural Economists (GEWISOLA).
  4. Rolf A. Groeneveld & Erik Ansink & Clemens C.M. Van de Wiel & Justus Wesseler, 2011. "Benefits and Costs of Biologically Contained Genetically Modified Tomatoes and Eggplants in Italy and Spain," Sustainability, MDPI, Open Access Journal, vol. 3(8), pages 1265-1281, August.
  5. Areal, Francisco J. & Riesgo, Laura & Gómez-Barbero, Manuel & Rodríguez-Cerezo, Emilio, 2012. "Consequences of a coexistence policy on the adoption of GMHT crops in the European Union," Food Policy, Elsevier, vol. 37(4), pages 401-411.

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