In medio stat virtus: coexistence policies for GM and non-GM production in spatial equilibrium

GianCarlo Moschini

ISU General Staff Papers from Iowa State University, Department of Economics

Abstract: This article develops a spatial equilibrium model suitable to analyse the economic impacts of measures (such as isolation distances and buffer zones) meant to ensure coexistence between genetically modified (GM) and non-GM crops. We show that policies that put the cost of such measures exclusively on GM producers lead to a competitive equilibrium that is biased against GM products (relative to the welfare maximising allocation). Efficient allocation is restored if the cost of implementing coexistence measures is shared equally between adjacent GM and non-GM farms.

Date: 2015-01-01
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Related works:
Journal Article: In medio stat virtus: coexistence policies for GM and non-GM production in spatial equilibrium (2015)
Working Paper: In Medio Stat Virtus: Coexistence Policies for GM and non-GM Production in Spatial Equilibrium (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:isu:genstf:201501010800001567

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