Welfare effects of non-GMO identity preservation: the case of potential coexistence of GM and non-GM rapeseed in the EU

Marion Desquilbet () and D.S. Bullock
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Marion Desquilbet: TSE-R - Toulouse School of Economics - UT Capitole - Université Toulouse Capitole - UT - Université de Toulouse - INRA - Institut National de la Recherche Agronomique - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique
D.S. Bullock: UIUC - University of Illinois at Urbana-Champaign [Urbana] - University of Illinois System

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Abstract: The paper presents a theoretical framework to analyze the welfare effects of non-GMO segregation and identity preservation (IP) on different types of consumers and producers. Our framework recognizes that IP may create some costs both producers of IP goods and non-IP goods because of flexibility losses in the production system. We illustrate our results using a simulation model of the rapeseed market in the EU and the rest of the world. The simulations show the effects of GMO adoption in the EU, given various levels of rejection of GMOs by domestic consumers. Our main objective is to examine how the simulation results are affected by the assumption of the presence or absence of flexibility losses in the production system due to the coexistence of regular and IP rapeseed.

Keywords: non-GMO; segregation; identity preservation; welfare effects; economics (search for similar items in EconPapers)
Date: 2003-01-27
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Published in Symposium "Product Differentiation and Market Segmentation in Grains and Oilseeds: Implications for Industry in Transition", United States Department of Agriculture - Economic Research Service (USDA - ERS). USA., Jan 2003, Washington, United States. 16 p

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-02285606

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