Genetic Contamination of Traditional Products

E. Kwan Choi

DEGIT Conference Papers from DEGIT, Dynamics, Economic Growth, and International Trade

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 the protection of GM seeds. A terminator gene can stop genetic contamination but imposes spillover costs on the traditional producers and reduces their outputs.

Keywords: Transboundary; Genetic Contamination; Terminator Genes (search for similar items in EconPapers)
Pages: 19 pages
Date: 2011-09
New Economics Papers: this item is included in nep-agr
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