N. Lalitha () (Gujarat Institute of Development Research, Ahmedabad) Carl E. Pray () (The State University of New Jersey) Bharat Ramaswami () (Indian Statistical Institute, New Delhi)
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Genetically modified seeds have to be approved by biosafety regulators before they can be commercialized. Illegal seeds are, however, common in many developing countries including Brazil, China and India. They potentially pose dangers to biosafety and also undermine the intellectual property rights of firms that own the genetically modifed traits. Their unchecked spread has been attributed to the near impossibility of enforcement when potential violators involve millions of small farmers. Based on a survey of cotton growers in Gujarat, India in 2004, and an examination of the structure of cotton seed production this paper finds that the government, in fact, possesed the information and means to enforce the law. A contingent valuation exercise reveals high relative valuations for illegal seeds correlated with the perceived costs of pesticide application. We discuss how that matters to the political cost of enforcement and to socially optimal policies
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Find related papers by JEL classification: K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law O34 - Economic Development, Technological Change, and Growth - - Technological Change - - - Intellectual Property Rights Q16 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - R&D; Agricultural Technology; Agricultural Extension Services
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