Konstantinos Giannakas and Amalia Yiannaka
University of Nebraska-Lincoln.

The National Organic Program, introduced in 2002, has explicitly linked the markets for organic and genetically modified (GM) products through the provision that organic-labeled food should be free of GM ingredients. This paper models the demand links between the organic, GM, and conventional products and analyzes the market and welfare effects of the introduction of labels for products of biotechnology under the new organic standards.

Key words: Agricultural biotechnology, genetically modified products, mandatory labeling, national organic standards, organic agriculture.