Environmental and Resource Economics

, Volume 22, Issue 4, pp 505–520

Biodiversity and Optimal Policies Towards R&D and the Growth of Genetically Modified Crops

  • Alistair Ulph
  • Lucy O'Shea

DOI: 10.1023/A:1019843425947

Cite this article as:
Ulph, A. & O'Shea, L. Environ Resource Econ (2002) 22: 505. doi:10.1023/A:1019843425947


In this paper we provide a simple model illustrating the possible nature ofgovernment policy with regards to genetic modification, taking into accountits impact on the environment. We show that it is necessary not only tointervene in the growing of crops, but also to intervene in R&D througha tax on the adoption of new GM technology. Without intervention at bothlevels, both the cultivation of GM crops and the rate of innovation in GM willexceed their socially optimal levels.

biodiversitycropsoptimal R&D

Copyright information

© Kluwer Academic Publishers 2002

Authors and Affiliations

  • Alistair Ulph
    • 1
  • Lucy O'Shea
    • 2
  1. 1.Department of EconomicsUniversity of SouthamptonSouthamptonUK
  2. 2.Department of GeographyUniversity of ReadingReadingUK