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Incentive Design for Introducing Genetically Modified Crops

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  • Kingwell, Ross S.

Abstract

The introduction of genetically modified (GM) crops raises several issues. This paper looks at incentives required to reduce problems of illegal and improper use of GM proprietary technology used in growing GM crops. A simple model of producer behaviour describes some key influences of a farmer’s response to GM crops. The model is illustrated using the example of INGARD cotton grown in Australia. The key findings are that legitimate adoption of a GM crop by a farmer depends on their attitude to risk, the relative profitability of growing the GM crop, the probability of detection of illegal or improper use of the GM crop and the severity of fines successfully imposed for fraud or contract breaches. In the case of INGARD cotton the problem of illegal and improper use of the technology can be addressed with modest changes to some of these factors.

Suggested Citation

  • Kingwell, Ross S., 2000. "Incentive Design for Introducing Genetically Modified Crops," 2000 Conference (44th), January 23-25, 2000, Sydney, Australia 123687, Australian Agricultural and Resource Economics Society.
    • Handle: RePEc:ags:aare00:123687
    DOI: 10.22004/ag.econ.123687
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    References listed on IDEAS

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    6. Hancock, Wayne M. & Harrison, Jennifer L. & O'Brian, Dennis T., 1999. "Matching Cotton Growers’ Perceptions Of The Value Of Ingard™ Cotton With Economic Analysis Based On Same Farm Paired Comparisons Of Performance," 1999 Conference (43th), January 20-22, 1999, Christchurch, New Zealand 123811, Australian Agricultural and Resource Economics Society.
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    Cited by:

    1. Maxwell, Brett J. & Wilson, William W. & Dahl, Bruce L., 2004. "Marketing Mechanisms In Gm Grains And Oilseeds," Agribusiness & Applied Economics Report 23639, North Dakota State University, Department of Agribusiness and Applied Economics.

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