Sergio H. Lence and Dermot J. Hayes
Iowa State University
We quantify the economic impact of introducing genetically modified (GM) crops. Short-run results suggest that it might be optimal to maintain the identity of a greater proportion of non- GM grain than is currently demanded by non-GM consumers. Long-run results show that GM crops almost always benefit society, but one scenario is presented where overall welfare falls.
Key Words: Bt corn, consumer welfare, genetically modified crops, identity preservation, producer welfare.