The spatial impact of genetically modified crops
Although genetically modified (GM) organisms have attracted a great deal of public attention, analysis of their economic impacts has been less common. It is, perhaps, spatial externalities where the divergence between efficient and unregulated outcomes is potentially largest, because the presence of transgenic crops may eliminate or severely reduce the planting of organic varieties and other crops where some consumers have a preference for non-GM crops. This paper constructs a simple model of the possible spatial external effects of the introduction of transgenic varieties and considers some of the public policy options for regulating the divergence between market outcomes and the efficient allocation of resources to GM crops. It is shown that co-existence may be impossible without strong regulation on planting patterns.
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- Goeschl, Timo & Swanson, Timothy, 2003. "The development impact of genetic use restriction technologies: a forecast based on the hybrid crop experience," Environment and Development Economics, Cambridge University Press, vol. 8(01), pages 149-165, February.
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- Munro, Alistair, 2003. "Monopolization and the regulation of genetically modified crops: an economic model," Environment and Development Economics, Cambridge University Press, vol. 8(01), pages 167-186, February.
- Murray Fulton & Konstantinos Giannakas, 2004. "Inserting GM Products into the Food Chain: The Market and Welfare Effects of Different Labeling and Regulatory Regimes," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(1), pages 42-60.
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