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Who Pays the Costs of Non-GMO Segregation and Identity Preservation?

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  • Marion Desquilbet
  • David S. Bullock
Abstract
Our aim is to explore who pays the costs and who reaps the benefits of maintaining a dual-market system of genetically modified organisms (GMOs) and non-GMOs. We analyze the welfare effects of the introduction of consumer “hatred” given GMO technology and the introduction of GMO technology given hatred. Making alternative assumptions of competitive and then monopolistic supply, we recognize that identity preservation (IP) of non-GMOs creates costs for IP and non-IP producers. We model these costs as depending on the sizes of the two supply channels. Copyright 2003, Oxford University Press.

Suggested Citation

  • Marion Desquilbet & David S. Bullock, 2003. "Who Pays the Costs of Non-GMO Segregation and Identity Preservation?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 91(3), pages 656-672.
    • Handle: RePEc:oup:ajagec:v:91:y:2003:i:3:p:656-672
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    File URL: http://hdl.handle.net/10.1111/j.1467-8276.2009.01262.x
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    1. Giannakas, Konstantinos & Fulton, Murray, 2002. "Consumption effects of genetic modification: what if consumers are right?," Agricultural Economics, Blackwell, vol. 27(2), pages 97-109, August.
    2. David S. Bullock & Marion Desquilbet & Elisavet Nitsi, 2001. "The economics of non-GMO segregation," Post-Print hal-02392210, HAL.
    3. William D. McBride & Nora Books, 2000. "Survey evidence on producer use and costs of genetically modified seed," Agribusiness, John Wiley & Sons, Ltd., vol. 16(1), pages 6-20.
    4. Mayer, Holly & Furtan, W. H., 1999. "Economics of transgenic herbicide-tolerant canola: The case of western Canada," Food Policy, Elsevier, vol. 24(4), pages 431-442, August.
    5. Bullock, D. S. & Desquilbet, M., 2002. "The economics of non-GMO segregation and identity preservation," Food Policy, Elsevier, vol. 27(1), pages 81-99, February.
    6. Desquilbet, Marion & Lemarie, Stephane & Levert, Fabrice, 2002. "Potential Adoption of Genetically Modified Rapeseed in France, Effects on Revenues of Farmers and Upstream Companies: an ex ante evaluation," 2002 International Congress, August 28-31, 2002, Zaragoza, Spain 24975, European Association of Agricultural Economists.
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    Cited by:

    1. GianCarlo Moschini & Harun Bulut & Luigi Cembalo, 2005. "On the Segregation of Genetically Modified, Conventional and Organic Products in European Agriculture: A Multi‐market Equilibrium Analysis," Journal of Agricultural Economics, Wiley Blackwell, vol. 56(3), pages 347-372, December.
    2. Olivier Bonroy & Christos Constantatos, 2015. "On the Economics of Labels: How Their Introduction Affects the Functioning of Markets and the Welfare of All Participants," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 97(1), pages 239-259.
    3. Marion Desquilbet & Sylvaine Poret, 2014. "How do GM/non GM coexistence regulations affect markets and welfare?," European Journal of Law and Economics, Springer, vol. 37(1), pages 51-82, February.
    4. Sobolevsky, Andrei & Moschini, GianCarlo & Lapan, Harvey E., 2002. "Genetically Modified Crop Innovations and Product Differentiation: Trade and Welfare Effects in the Soybean Complex," Staff General Research Papers Archive 10098, Iowa State University, Department of Economics.
    5. 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.
    6. Mario F. Teisl & Julie A. Caswell, 2003. "Information Policy and Genetically Modified Food: Weighting the Benefits and Costs," QA - Rivista dell'Associazione Rossi-Doria, Associazione Rossi Doria, issue 4, March.
    7. GianCarlo Moschini, 2015. "In medio stat virtus: coexistence policies for GM and non-GM production in spatial equilibrium," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 42(5), pages 851-874.
    8. Thomas Venus & Nicholas Kalaitzandonakes & Justus Wesseler, 2012. "Ist das Angebot von Nahrungsmitteln "Ohne Gentechnik" wirtschaftlich nachhaltig?," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, vol. 81(4), pages 93-110.
    9. Nielsen, Chantal Pohl & Robinson, Sherman & Thierfelder, Karen, 2002. "Trade in genetically modified food: A survey of empirical studies," TMD discussion papers 106, International Food Policy Research Institute (IFPRI).
    10. Baker, Andrew & Smyth, Stuart, 2010. "Managing Opportunism in Value-Added Supply Chains:," 14th ICABR Conference, June 16-18, 2010, Ravello, Italy 187979, International Consortium on Applied Bioeconomy Research (ICABR).
    11. Arthur P. J. Mol & Peter Oosterveer, 2015. "Certification of Markets, Markets of Certificates: Tracing Sustainability in Global Agro-Food Value Chains," Sustainability, MDPI, vol. 7(9), pages 1-21, September.
    12. Bullock, David S. & D'Arcangelo, Filippo Maria & Desquilbet, Marion, 2018. "A discussion of the market and policy failures associated with the adoption of herbicide-tolerant crops," TSE Working Papers 18-959, Toulouse School of Economics (TSE), revised Aug 2019.

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