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Spatial Efficiency of Genetically Modified and Organic Crops

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  • Ambec, Stefan
  • Langinier, Corinne
  • Marcoul, Philippe

Abstract

We analyze the spatial distribution of genetically modified (GM) and organic crops. Because some organic crops will likely be contaminated by GM crops, not all of the non- GM crops can be sold as organic. Therefore, the choice of producing organic crops will depend on the surrounding crops. When producers follow individual strategies, many spatial configurations arise in equilibrium, some being more efficient than others. We examine how coordination among producers has an impact on the spatial distribution of crop varieties. We show that coordination among only a small number of producers can greatly improve efficiency. For instance, an organic producer who has two GM neighbors needs to coordinate only with one of them to reduce spatial externality and improve efficiency.

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Bibliographic Info

Paper provided by Structure and Performance of Agriculture and Agri-products Industry (SPAA) in its series Working Papers with number 125232.

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Date of creation: Jun 2012
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Handle: RePEc:ags:spaawp:125232

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Web page: http://servsas.fsaa.ulaval.ca/index.php?id=12482&L=1

Related research

Keywords: Genetically Modi.ed crops; externality; spatial localization; coordination; Crop Production/Industries; Industrial Organization; Public Economics; D62 (Externalities); L11 (Market Structure);

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  1. Alexander E. Saak & David A. Hennessy, 2002. "Planting Decisions and Uncertain Consumer Acceptance of Genetically Modified Crop Varieties," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(2), pages 308-319.
  2. 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.
  3. Lusk, Jayson L. & Jamal, Mustafa & Kurlander, Lauren & Roucan, Maud & Taulman, Lesley, 2005. "A Meta-Analysis of Genetically Modified Food Valuation Studies," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 30(01), April.
  4. Munro, Alistair, 2008. "The spatial impact of genetically modified crops," Ecological Economics, Elsevier, vol. 67(4), pages 658-666, November.
  5. 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.
  6. Alexander E. Saak, 2004. "Equilibrium and Efficient Land-Use Arrangements under Spatial Externality on a Lattice," Center for Agricultural and Rural Development (CARD) Publications 04-wp376, Center for Agricultural and Rural Development (CARD) at Iowa State University.
  7. Beckmann, Volker & Wesseler, Justus, 2005. "Spatial Dimension Of Externalities And The Coase Theorem: Implications For Co-Existence Of Transgenic Crops," 2005 Annual meeting, July 24-27, Providence, RI 19534, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  8. Parkhurst, Gregory M. & Shogren, Jason F., 2007. "Spatial incentives to coordinate contiguous habitat," Ecological Economics, Elsevier, vol. 64(2), pages 344-355, December.
  9. David J. Lewis & Andrew J. Plantinga & JunJie Wu, 2009. "Targeting Incentives to Reduce Habitat Fragmentation," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 91(4), pages 1080-1096.
  10. Derek Berwald & Colin A. Carter & Guillaume P. Gru�re, 2006. "Rejecting New Technology: The Case of Genetically Modified Wheat," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 88(2), pages 432-447.
  11. 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.
  12. Belcher, Ken & Nolan, James & Phillips, Peter W.B., 2005. "Genetically modified crops and agricultural landscapes: spatial patterns of contamination," Ecological Economics, Elsevier, vol. 53(3), pages 387-401, May.
  13. Charles Noussair & StÈphane Robin & Bernard Ruffieux, 2004. "Do Consumers Really Refuse To Buy Genetically Modified Food?," Economic Journal, Royal Economic Society, vol. 114(492), pages 102-120, 01.
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