Article
In Medio Stat Virtus: Coexistence Policies for GM and non-GM Production in Spatial Equilibrium
CARD Working Papers
Publication Date
9-1-2014
Series Number
14-WP 548 (Revised)
Abstract
This paper develops a spatial equilibrium model suitable to analyze the economic impacts of measures (such as isolation distances and buffer zones) meant to ensure coexistence between 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 maximizing allocation). Efficient allocation is restored if the cost of implementing coexistence measures is shared equally between adjacent GM and non-GM farms.
Disciplines
Citation Information
GianCarlo Moschini. "In Medio Stat Virtus: Coexistence Policies for GM and non-GM Production in Spatial Equilibrium" (2014) Available at: http://works.bepress.com/giancarlo-moschini/25/