Who pays the costs of non-GMO segregation and identity preservation?
AbstractThis paper proposes an analytical framework to examine the market and welfare impacts of GMOs, when some consumers refuse genetically modified organisms (GMOs) and when two supply channels are segregated (one for goods that containing GMOs and one for non-genetically-modified identity-preserved goods). Our analytical framework begins at the level of individual farmers, handlers and consumers, to build up market supply and demand functions. This allows us to circumvent the difficulties of conducting supply and demand analysis in the different horizontally and vertically related markets concerned by GMOs and market segregation. We represent explicitly the costs of non-GMO segregation and identity preservation (IP) for both producers of non-GM IP goods and producers of non-IP goods, and how these costs vary depending on the relative sizes of the two production channels. We then illustrate our model by a simulation of potential adoption of GM rapeseed with non-GMO market segregation in the European Union (EU). We analyze how the costs of IP are distributed among heterogenous producers, handlers and consumers in this simulation.
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Bibliographic InfoPaper provided by European Association of Agricultural Economists in its series 2002 International Congress, August 28-31, 2002, Zaragoza, Spain with number 24973.
Date of creation: 2002
Date of revision:
genetically modified organisms; consumers'; non genetically modified product; segregation; innovation; multi-market analysis; Consumer/Household Economics;
Other versions of this item:
- Marion Desquilbet & David S. Bullock, 2003. "Who Pays the Costs of Non-GMO Segregation and Identity Preservation?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 91(3), pages 656-672.
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- Desquilbet, Marion & Lemarie, Stephane & Levert, Fabrice, 2002. "Potential Adoption of Genetically Modified Rapeseed in France, Effects on Revenues of Farmers and Upstream Companies: an ex ante evaluation," 2002 International Congress, August 28-31, 2002, Zaragoza, Spain 24975, European Association of Agricultural Economists.
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26009, Regional Research Project NE-165 Private Strategies, Public Policies, and Food System Performance.
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- Bullock, David S. & Desquilbet, Marion & Nitsi, Elisavet I., 2000.
"The Economics Of Non-Gmo Segregation And Identity Preservation,"
2000 Annual meeting, July 30-August 2, Tampa, FL
21845, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
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2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland
114757, European Association of Agricultural Economists.
- Marion Desquilbet & Sylvaine Poret, 2014. "How do GM/non GM coexistence regulations affect markets and welfare?," European Journal of Law and Economics, Springer, vol. 37(1), pages 51-82, February.
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Staff General Research Papers
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- Skevas, Theodoros & Fevereiro, Pedro & Wesseler, Justus, 2010. "Coexistence regulations and agriculture production: A case study of five Bt maize producers in Portugal," Ecological Economics, Elsevier, vol. 69(12), pages 2402-2408, October.
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