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Spatial Efficiency of Genetically Modified and Organic Crops

  • Ambec, Stefan
  • Langinier, Corinne
  • Marcoul, Philippe

We analyze the spatial distribution of genetically modified (GM) and organic crops. Because some organic crops will likely be contaminated by GM crops, not all of the non- GM crops can be sold as organic. Therefore, the choice of producing organic crops will depend on the surrounding crops. When producers follow individual strategies, many spatial configurations arise in equilibrium, some being more efficient than others. We examine how coordination among producers has an impact on the spatial distribution of crop varieties. We show that coordination among only a small number of producers can greatly improve efficiency. For instance, an organic producer who has two GM neighbors needs to coordinate only with one of them to reduce spatial externality and improve efficiency.

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File URL: http://purl.umn.edu/125232
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Paper provided by Structure and Performance of Agriculture and Agri-products Industry (SPAA) in its series Working Papers with number 125232.

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Date of creation: Jun 2012
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Handle: RePEc:ags:spaawp:125232
Contact details of provider: Web page: http://servsas.fsaa.ulaval.ca/index.php?id=12482&L=1

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  1. Parkhurst, Gregory M. & Shogren, Jason F., 2007. "Spatial incentives to coordinate contiguous habitat," Ecological Economics, Elsevier, vol. 64(2), pages 344-355, December.
  2. Alexander E. Saak, 2004. "Equilibrium and Efficient Land-Use Arrangements under Spatial Externality on a Lattice," Food and Agricultural Policy Research Institute (FAPRI) Publications 04-wp376, Food and Agricultural Policy Research Institute (FAPRI) at Iowa State University.
  3. Saak, Alexander E. & Hennessy, David A., 2001. "Planting Decisions And Uncertain Consumer Acceptance Of Genetically Modified Crop Varieties," 2001 Annual meeting, August 5-8, Chicago, IL 20581, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  4. R. H. Coase, 2013. "The Problem of Social Cost," Journal of Law and Economics, University of Chicago Press, vol. 56(4), pages 837 - 877.
  5. Beckmann, Volker & Soregaroli, Claudio & Wesseler, Justus, 2009. "Ex-ante regulation and ex-post liability under uncertainty and irreversibility: governing the coexistence of GM crops," Economics Discussion Papers 2009-53, Kiel Institute for the World Economy.
  6. Lusk, Jayson L. & Jamal, Mustafa & Kurlander, Lauren & Roucan, Maud & Taulman, Lesley, 2005. "A Meta-Analysis of Genetically Modified Food Valuation Studies," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 30(01), April.
  7. Munro, Alistair, 2008. "The spatial impact of genetically modified crops," Ecological Economics, Elsevier, vol. 67(4), pages 658-666, November.
  8. Volker Beckmann & Claudio Soregaroli & Justus Wesseler, 2006. "Coexistence Rules and Regulations in the European Union," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 88(5), pages 1193-1199.
  9. 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.
  10. 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.
  11. David J. Lewis & Andrew J. Plantinga & JunJie Wu, 2009. "Targeting Incentives to Reduce Habitat Fragmentation," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 91(4), pages 1080-1096.
  12. Derek Berwald & Colin A. Carter & Guillaume P. Gru�re, 2006. "Rejecting New Technology: The Case of Genetically Modified Wheat," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 88(2), pages 432-447.
  13. Skevas, Theodoros & Fevereiro, Pedro & Wesseler, Justus, 2010. "Coexistence regulations and agriculture production: A case study of five Bt maize producers in Portugal," Ecological Economics, Elsevier, vol. 69(12), pages 2402-2408, October.
  14. Beckmann, Volker & Wesseler, Justus, 2005. "Spatial Dimension Of Externalities And The Coase Theorem: Implications For Co-Existence Of Transgenic Crops," 2005 Annual meeting, July 24-27, Providence, RI 19534, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
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