Genetic Contamination of Traditional Products
AbstractCross-pollination can be caused by birds, insects and wind. Genetically modified (GM) seeds are produced each year in a controlled environment to maintain their purity. However, pollen from the GM crop can be transferred to traditional crops. When the GM crop producers are in long-run equilibrium and buy seeds from a monopolistic seed producer, the resulting market equilibrium is identical to that when a seed monopolist produces the GM crop directly. When involuntary genetic contamination occurs, the monopolist eventually loses its advantage and stops its protection of GM seeds. A terminator gene can stop genetic contamination but imposes spillover costs on the traditional producers and reduces their outputs.
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Bibliographic InfoPaper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 3624.
Date of creation: 2011
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Find related papers by JEL classification:
- Q50 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - General
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- Harvey E. Lapan & Shiva Sikdar, 2011.
"Strategic Environmental Policy under Free Trade with Transboundary Pollution,"
Review of Development Economics,
Wiley Blackwell, vol. 15(1), pages 1-18, 02.
- Lapan, Harvey E. & Sikdar, Shiva, 2010. "Strategic environmental policy under free trade with transboundary pollution," 2010 Conference (54th), February 10-12, 2010, Adelaide, Australia 59160, Australian Agricultural and Resource Economics Society.
- Lapan, Harvey E. & Sikdar, Shiva, 2007. "Strategic Environmental Policy Under Free Trade with Transboundary Pollution," Staff General Research Papers 31298, Iowa State University, Department of Economics.
- Sikdar, Shiva & Lapan, Harvey E., 2008. "Strategic Environmental Policy Under Free Trade with Transboundary Pollution," Staff General Research Papers 12931, Iowa State University, Department of Economics.
- 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.
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