On the regulation of spatial externalities: coexistence between GM and conventional crops in the EU and the ‘newcomer principle

Pollen-mediated gene flow is one of the main concerns associated with the introduction of genetically modified (GM) crops. Should a premium for non-GM varieties emerge on the market, ‘contamination' by GM pollen would generate a revenue loss for growers of non-GM varieties. This paper analyses...

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Bibliographic Details
Published in:The Australian journal of agricultural and resource economics 2011, Vol.55 (1), p.126-143
Main Authors: Ceddia, Michele Graziano, Bartlett, Mark, De Lucia, Caterina, Perrings, Charles
Format: Article
Language:English
Subjects:
Agricultural economics
Agricultural policy
Agricultural production
Agriculture
Buffer zones
coexistence
Contamination
Economic theory
Europe
Europe: Industries and resources
European Union
Externalities
Genetically altered foods
Genetically modified foods
Genetically modified organisms
Land allocation decisions
Monte Carlo simulation
New technology
Pollen
pollen‐mediated gene flow
production externalities
Regulation
Studies
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Summary:Pollen-mediated gene flow is one of the main concerns associated with the introduction of genetically modified (GM) crops. Should a premium for non-GM varieties emerge on the market, ‘contamination' by GM pollen would generate a revenue loss for growers of non-GM varieties. This paper analyses the problem of pollen-mediated gene flow as a particular type of production externality. The model, although simple, provides useful insights into coexistence policies. Following on from this and taking GM herbicide-tolerant oilseed rape (Brassica napus) as a model crop, a Monte Carlo simulation is used to generate data and then estimate the effect of several important policy variables (including width of buffer zones and spatial aggregation) on the magnitude of the externality associated with pollen-mediated gene flow.
ISSN:1364-985X
1467-8489
DOI:10.1111/j.1467-8489.2010.00518.x