A three essays dissertation on agricultural and environmental microeconomics

Abstract

This article examines the dilemma of a large exporting Country for an agricultural product which has to determine whether to approve or not the products of the biotechnology with or without a labeling regime. In doing so this paper makes two points. First the approval decision of the products of the biotechnology is specific to the labeling regime. While the products of the GM technology should be approved under a labeling regime, in absence of labeling requirements they should not be authorized. Second the incapacity to protect the innovator rents can prevent the approval of the products of the biotechnology. 1 See Sheldon (2004) for a comprehensive review of the policy debate between the EU and the US on the regulation of Genetically Modified Organisms (GMOs). On the labeling of GM products see also Caswell (1998),