ABSTRACT
Genetically modified plants represent a new technology widely applied for crop protection purposes (approximately 50 million hectares in 2001). The introduction of this crop protection technology is remarkably parallel to the introduction of chemical pesticides some 50 years earlier. Both technologies require intensive regulation, can produce negative externalities, and are components of integrated pest management. Therefore, the economic analysis of genetically modified organisms can draw from some methodological advances achieved through economic studies of pesticides. We review the lessons learned from the economics of chemical pesticides and investigate the extent to which these can be applied to genetically modified organisms used as crop protection agents and have actually been applied in recent economic analysis of biotechnology.
