The Costs of Coexistence Measures for Genetically Modified Maize in Germany

We estimate the perceived costs of legal requirements (‘coexistence measures’) for growing genetically modified (GM) Bt maize in Germany using a choice experiment. The costs of the evaluated ex‐ante and ex‐post coexistence measures range from zero to more than €300 per measure and most are greater than the extra revenue the farmers in our survey expect from growing Bt maize or than estimates in the literature. The cost estimates for temporal separation, the highest in our evaluation, imply that the exclusion of this measure in Germany is justified. The costliest measures of the ones that are currently applied in Germany are joint and strict liability for all damages. Our results further show that neighbours do not cause a problem and opportunities for reducing costs through agreements with them exist. Finally, we find that farmers’ attitudes towards GM crops affect the probability of adoption of Bt maize. Our results imply that strict liability will deter the cultivation of Bt maize in Germany unless liability issues can be addressed through other means, for example, through neighbours agreements.     

On the Segregation of Genetically Modified,Conventional and Organic Products in European Agriculture: A Multi‐market Equilibrium Analysis

Evaluating the possible benefits of the introduction of genetically modified (GM) crops must address the issue of consumer resistance as well as the complex regulation that has ensued. In the European Union (EU), this regulation envisions the co‐existence of GM food with conventional and quality‐enhanced products, mandates the labelling and traceability of GM products and allows only a stringent adventitious presence of GM content in other products. All these elements are brought together within a partial equilibrium model of the EU agricultural food sector. The model comprises conventional, GM and organic food. Demand is modelled in a novel fashion, whereby organic and conventional products are treated as horizontally differentiated but GM products are vertically differentiated (weakly inferior) relative to conventional ones. Supply accounts explicitly for the land constraint at the sector level and for the need for additional resources to produce organic food. Model calibration and simulation allow insights into the qualitative and quantitative effects of the large‐scale introduction of GM products in the EU market. We find that the introduction of GM food reduces overall EU welfare, mostly because of the associated need for costly segregation of non‐GM products, but the producers of quality‐enhanced products actually benefit.     

Genetically Modified Crops and Product Differentiation: Trade and Welfare Effects in the Soybean Complex

A partial equilibrium four-region world trade model for the soybean complex is developed in which Roundup Ready (RR) products are weakly inferior substitutes to conventional ones, RR seeds are priced at a premium, and costly segregation is necessary to separate conventional and biotech products. Solution of the calibrated model illustrates how incomplete adoption of RR technology arises in equilibrium. The United States, Argentina, Brazil, and the Rest of the World (ROW) all gain from the introduction of RR soybeans, although some groups may lose. The impacts of RR production or import bans by the ROW or Brazil are analyzed. U.S. price support helps U.S. farmers, despite hurting the United States and has the potential to improve world efficiency.     

Rejecting New Technology: The Case of Genetically Modified Wheat

Canada has stringent regulations covering the release of new wheat varieties, but the United States has virtually no regulations in this area. Monsanto Co. developed genetically modified (GM) spring wheat for North America, and made a commitment to the U.S. industry to release this new technology simultaneously in both Canada and the United States, or not at all. The Canadian regulatory bias against new varieties acted as a veto against GM wheat and caused Monsanto to shelve the technology in both countries in 2004. Substantial economic rents were foregone in North America due to the rejection of this new technology.     

Integrating Technology Traits and Producer Heterogeneity: A Mixed-Multinomial Model of Genetically Modified Corn Adoption

This article proposes a model of technology adoption that integrates demand for individual traits of new technologies with the potential for heterogeneity based on farm and farmer characteristics. The model is applied to recent genetically modified corn adoption data from Minnesota and Wisconsin farmers, using a mixed-multinomial logit (MMNL) model to estimate the effects of traits and farm and farmer characteristics on adoption outcomes. This approach allows explicit recovery of estimates of farmers' shadow prices for individual technology traits. Results show the importance of producer and regional heterogeneity in preferences for seed traits.     

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

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.     

Primal/Dual Positive Math Programming: Illustrated through an Evaluation of the Impacts of Market Resistance to Genetically Modified Grains

The goal of Howitt's positive mathematical programming procedure is to calibrate a mathematical programming model so that it will reproduce a set of base data for the primal variables. This article develops an analogous procedure allowing one to specify the levels of both primal and dual variables. This article also sheds light on a potential ambiguity of Howitt's procedure (with attendant policy evaluation impacts). The procedure is illustrated through application to an equilibrium displacement model focused on evaluating the consequences of the reluctance of U.S. trading partners to accept genetically modified crop products for U.S. production patterns and net farm income.     

Innovation and Trade with Endogenous Market Failure: The Case of Genetically Modified Products

A partial-equilibrium, two-country model is developed to analyze implications from the introduction of genetically modified (GM) products. In the model, innovators hold proprietary rights, farmers are (competitive) adopters, some consumers deem GM food to be inferior in quality to traditional food, and the mere introduction of GM crops affects the costs of non-GM food (because of costly identity preservation). Among the results derived, it is shown that, although GM innovations have the potential to improve efficiency, some groups can be made worse off. Indeed, it is even possible that the costs induced by GM innovations outweigh the efficiency gains.     

Consumer Perception of Genetically Modified Food: Empirical Evidence From India

Although the advent of genetically modified (GM) foods changed the agricultural scenario in developed countries, existing research confirms that consumer perception about the consumption of the same is often distorted. GM foods entered the Indian market amid widespread controversies and criticisms. There exists a host of studies that tried to establish the factors that shape favorable consumer perception toward GM foods indeed, but evidence from developing countries like India is still missing. The article undertakes an exploratory investigation of the factors that shape consumer perception about the consumption of GM foods in India and subsequently confirms the same with the aid of a measurement model. The study provides important implications for managers in directing efforts toward influencing consumer perception and instigating positive attitudes toward GM foods so that the benefits of their use can be extended to the masses in relatively nascent markets.     

转基因食品检测技术的相关研究

基因工程是生物工程的一个重要分支,是在分子水平对基因进行技术改造,将外部基因经体外重组导入至受体细胞中,使基因可以在受体细胞内进行复制、转录与翻译.经过基因技术的不断发展和改造,转入的基因能够稳定遗传,表达出新产物或新性状.转基因食品为人们的生活带来了更多选择,特别是植物性转基因食品的出现.DNA重组技术与细胞融合技术...     

Consumer Demand for Genetically Modified Rice in Urban China

We investigate consumer demand for genetically modified (GM) rice in urban China, using a relatively large survey of urban consumers in 2013 and the contingent valuation method. Our results show that respondents discount their WTP for first, second and third generation of GM rice by 31%, 34% and 36%, respectively, compared with non‐GM rice, indicating substantial aversion to GM rice by Chinese consumers. The level of consumers’ subjective knowledge of GM rice has a significantly negative impact on their WTP for GM rice, implying that GM rice in China has become a ‘special food’ with an unreliable image.     

Determinants of Voter Support for a Five‐Year Ban on the Cultivation of Genetically Modified Crops in Switzerland

While much effort has been devoted to estimating market premiums for non‐genetically modified (GM) food, the results of such research are largely silent about the preferences for the public good aspects, or externalities, of GM food production. For public goods, the closest substitute of private consumption decisions is voting on referenda. In November 2005, 55.7% of 2 million Swiss voters approved a five‐year moratorium (ban) on the commercial cultivation of GM plants in Switzerland. The present study examines how individual voting decisions were determined by: (i) socioeconomic characteristics; (ii) political preference/ideology; and (iii) agreement with a series of arguments in favour and against the use of GM plants in Swiss agriculture. The analysis is based on the data of the regular voter survey undertaken after the national‐level voting in Switzerland. The results suggest that current concerns about the use of genetically engineered plants in agriculture may not automatically decrease with higher levels of education/knowledge and generational change. Furthermore, analysis of voter motives suggests that public support for a ban on GM crops may be even larger in other countries, where industrial interests in crop biotechnology are less pronounced.     

Market and Welfare Effects of Second-Generation, Consumer-Oriented GM Products

We examine the economic effects of the introduction of consumer-oriented genetically modified (GM) products into the food system by developing a model of heterogeneous consumers and producers that allows for vertical and horizontal differentiation between the products available to consumers. The model facilitates the estimation of consumer and producer surpluses in the product/utility and product/net returns spaces. Results show that the introduction of consumer-oriented GM products can change the relationship between GM and conventional and organic products from one of vertical to one of horizontal product differentiation and can enhance both economic welfare and the market acceptance and growth of agricultural biotechnology.     

Landscape Clubs: Co-existence of Genetically Modified and Organic Crops

The possibility of increased production of genetically modified (GM) crops in agriculture accentuates the need to examine the feasibility of GM and non‐GM technologies co‐existing on a common physical landscape. Using the theory of clubs, this paper examines the possibility of co‐existence for GM and organic wheat technologies through the formation of an organic club with an endogenously determined buffer zone. Given the available data on prices, and yields, it is shown that a club can be created in which GM and organic agricultural production technologies can economically co‐exist in the same physical landscape. Specifically, co‐existence results in an increase in economic welfare over a situation where only GM technology is used but is not Pareto superior because producers in the buffer zone will incur injury. We show that organic producers in the club can compensate producers in the buffer zone and still be better off. Hence, the compensation principle holds. La possibilité de production accrue de cultures génétiquement modifiées (GM) accentue la nécessité d'examiner la faisabilité de coexistence des technologies GM et non GM dans un même paysage agricole. À l'aide de la théorie des clubs, le présent article a examiné la possibilité de coexistence des technologies de culture de blé GM et de blé biologique en créant un club ?biologique? comprenant une zone tampon déterminée de façon endogène. Compte tenu des données disponibles concernant les prix et les rendements, il est montré qu'il est possible de créer un club au sein duquel les technologies de production de cultures biologiques et GM peuvent économiquement coexister dans un même paysage naturel. Spécifiquement, la coexistence engendre une augmentation du bien‐être économique par rapport à une situation où seule la technologie GM est utilisée, mais elle n'est pas Pareto supérieure parce que les producteurs dans la zone tampon subiront des dommages. Nous montrons que les producteurs de cultures biologiques membres du club peuvent indemniser les producteurs de la zone tampon tout en demeurant en bonne position. Le principe de compensation tient donc.     

Inserting GM Products into the Food Chain: The Market and Welfare Effects of Different Labeling and Regulatory Regimes

The purpose of this article is to examine the system-wide effects of the introduction of genetically modified (GM) products with and without labeling and to compare these two regimes to a third regime where GM products are not present either because they have not yet been developed or because they have been banned. For each regime, the decisions and welfare of consumers, producers, and life science companies are examined. The article explicitly incorporates the consumer response to the introduction of GM technology and considers different market structures of the life science sector.     

Dynamic Supply Response and Welfare Effects of Technological Change on Perennial Crops: The Case of Cocoa in Malaysia

Modern biotechnology will generate crops with higher yields and enhanced resistance to pests and diseases. In the case of perennial crops, the age composition of the present stand, the farmers' willingness to invest, and the yield profiles of old and new trees determine the speed of adoption of the new technology and the timing of the effects on supply and demand conditions. We adapt conventional welfare measures to account for these factors in the Assessment of research induced supply shifts. The application to cocoa in Malaysia shows that consumers and adopting producers gain and non-adopters lose. Overall, 72% of the welfare gains go to the consumers.     

Grading, Minimum Quality Standards, and the Labeling of Genetically Modified Products

We relate the labeling of genetically modified (GM) products to the theory of grading and minimum quality standards. The model represents three stages in the supply chain, assumes a vertical product differentiation framework, allows for the accidental commingling of non-GM products, and treats regulation as a purity threshold for non-GM products. We find that a non-GM purity level that is too strict leads to the disappearance of the non-GM product, and that some quality standard benefits farmers. Indeed, the standard that is optimal from the perspective of producers is stricter than what is optimal for consumers and for societal welfare.     

Implications of biotech traits with segregation costs and market segments: the case of Roundup Ready(R) Wheat

Roundup Ready^® Wheat (RRW) is one of the first geneticallymodified (GM) traits for the wheat sector. We develop a spatialpartial equilibrium model of the higher-protein hard wheat marketand assess the changes in the distribution of welfare associatedwith release and adoption of RRW. It incorporates segments forGM aversion in each market and segregation costs for each segment.In the most likely scenario, producer and consumer welfare increasesby $301 and $252 million, respectively. Producers of hard redspring wheat in the US and Canada gain. There are welfare lossesto hard red winter wheat growers in the US and to EU consumerswho have to import at a higher cost.     

Demand for Beef from Cattle Administered Growth Hormones or Fed Genetically Modified Corn: A Comparison of Consumers in France, Germany, the United Kingdom, and the United States

We compare consumer valuations of beef ribeye steaks from cattle produced without growth hormones or genetically modified corn in France, Germany, the United Kingdom, and the United States. Results suggest that French consumers place a higher value on beef from cattle that have not been administered added growth hormones than U.S. consumers; however, valuations of non-hormone-treated beef are statistically indistinguishable across Germany, the United Kingdom, and the United States. Results also suggest that European consumers place a much higher value on beef from cattle that have not been fed genetically modified corn than U.S. consumers.