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Genetic Contamination of Traditional Products

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  • Choi, E. Kwan

Abstract

Cross-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.

Suggested Citation

  • Choi, E. Kwan, 2013. "Genetic Contamination of Traditional Products," Staff General Research Papers Archive 37369, Iowa State University, Department of Economics.
    • Handle: RePEc:isu:genres:37369
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    File URL: http://www2.econ.iastate.edu/papers/p17369-2013-06-01.pdf
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    References listed on IDEAS

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    1. 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, February.
    2. Choi, E. Kwan, 2010. "International trade in genetically modified products," International Review of Economics & Finance, Elsevier, vol. 19(3), pages 383-391, June.
    3. Linda A. Toolsema, 2008. "Competition with Mandatory Labeling of Genetically Modified Products," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 164(3), pages 429-448, September.
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    Cited by:

    1. Hartigan, James C. & McMahon, Joseph A., 2022. "A fuzzy look at a fuzzy agreement: Risk management under the WTO SPS Agreement," Economic Analysis and Policy, Elsevier, vol. 73(C), pages 272-284.

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    More about this item

    Keywords

    Genetic contamination; terminator genes;

    JEL classification:

    • F1 - International Economics - - Trade

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