On the Segregation of Genetically Modified, Conventional, and Organic Products in European Agriculture: A Multi-market Equilibrium Analysis, October 2005

Evaluating the possible benefits of the introduction of genetically modified (GM) crops must address the issue of consumer resistance as well as the complex regulation that has ensued. In the European Union (EU) this regulation envisions the “co-existence” of GM food with conventional and quality-enhanced products, mandates the labelling and traceability of GM products, and allows only a stringent adventitious presence of GM content in other products. All these elements are brought together within a partial equilibrium model of the EU agricultural food sector. The model comprises conventional, GM and organic food. Demand is modelled in a novel fashion, whereby organic and conventional products are treated as horizontally differentiated but GM products are vertically differentiated (weakly inferior) relative to conventional ones. Supply accounts explicitly for the land constraint at the sector level and for the need for additional resources to produce organic food. Model calibration and simulation allow insights into the qualitative and quantitative effects of the large-scale introduction of GM products in the EU market. We find that the introduction of GM food reduces overall EU welfare, mostly because of the associated need for costly segregation of non-GM products, but the producers of quality-enhanced products actually benefit.

The Lincoln Highway Association’s “Object Lesson:” The Seedling Mile in Linn County Iowa,

The Seedling Mile in Linn County, Iowa, was part of the Lincoln Highway Association’s so-called “object lesson” program that sought to graphically demonstrate, in the paving of selected one-mile demonstration sections, the benefits of concrete paving to improving road travel across the nation. Constructed in 1918-19, this Seedling Mile became much more than an object lesson and served as something of a battleground between two municipalities—Marion and Cedar Rapids—in their struggle over the county seat and their place on the Lincoln Highway. The Seedling Mile eventually became part of a continuously paved section of the Lincoln Highway between Chicago and Cedar Rapids, with the whole of the Lincoln Highway in Iowa paved in some fashion by the 1930s. In 2002, Linn County reconstructed Mt. Vernon Road from the City of Mt. Vernon to the west end of the Seedling Mile impacting the historic road section. An agreement between concerned government agencies resulted in this publication in partial mitigation of the impact to this historic road section under the guidelines of the National Historic Preservation Act.