WHO PAYS THE COSTS OF NON-GMO SEGREGATION AND IDENTITY PRESERVATION, AND WHO IS TO BLAME?

The paper analyzes the welfare effects of the introduction of GMO technology into a market in which a fraction of consumers refuses to buy GMOs. Our theoretical model recognizes that segregation and identity preservation (IP) of non-GMOs may create costs for both IP producers and non-IP producers. Our results show how GMO-hating consumers may win or lose from the introduction of GMO technology. If IP creates costs for non-IP producers, indifferent consumers and GMO producers may be made worse off because others refuse to consume GMOs. If GMO rejection is strong, IP producers win when GMOs are introduced, even though they do not produce GMOs.


Issue Date:
2003
Publication Type:
Conference Paper/ Presentation
PURL Identifier:
http://purl.umn.edu/22011
Total Pages:
36
Series Statement:
Selected Paper




 Record created 2017-04-01, last modified 2017-08-24

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