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The spatial impact of genetically modified crops

  • Munro, Alistair

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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Article provided by Elsevier in its journal Ecological Economics.

Volume (Year): 67 (2008)
Issue (Month): 4 (November)
Pages: 658-666

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Handle: RePEc:eee:ecolec:v:67:y:2008:i:4:p:658-666
Contact details of provider: Web page: http://www.elsevier.com/locate/ecolecon

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  1. 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.
  2. 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.
  3. Matsumoto, Shigeru, 2006. "Consumers’ Valuation of GMO Segregation Programs in Japan," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 38(01), April.
  4. Nelson, Gerald C. & Bullock, David S., 2003. "Simulating a relative environmental effect of glyphosate-resistant soybeans," Ecological Economics, Elsevier, vol. 45(2), pages 189-202, June.
  5. 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.
  6. 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.
  7. 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.
  8. Sandra S. Batie, 2003. "The Environmental Impacts of Genetically Modified Plants: Challenges to Decision Making," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(5), pages 1107-1111.
  9. Aslaksen, Iulie & Ingeborg Myhr, Anne, 2007. ""The worth of a wildflower": Precautionary perspectives on the environmental risk of GMOs," Ecological Economics, Elsevier, vol. 60(3), pages 489-497, January.
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