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Welfare effects of non-GMO identity preservation: the case of potential coexistence of GM and non-GM rapeseed in the EU

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Desquilbet, Marion | Bullock, D.S.

Edité par CCSD -

The paper presents a theoretical framework to analyze the welfare effects of non-GMO segregation and identity preservation (IP) on different types of consumers and producers. Our framework recognizes that IP may create some costs both producers of IP goods and non-IP goods because of flexibility losses in the production system. We illustrate our results using a simulation model of the rapeseed market in the EU and the rest of the world. The simulations show the effects of GMO adoption in the EU, given various levels of rejection of GMOs by domestic consumers. Our main objective is to examine how the simulation results are affected by the assumption of the presence or absence of flexibility losses in the production system due to the coexistence of regular and IP rapeseed.

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