Genetically modified (GM) crops have been used commercially for
more than 10 years. Available impact studies of insect-resistant and
herbicide-tolerant crops show that these technologies are beneficial
to farmers and consumers, producing large aggregate welfare gains
as well as positive effects for the environment and human health.
The advantages of future applications could even be much bigger.
Given a conducive institutional framework, GM crops can contribute
significantly to global food security and poverty reduction.
Nonetheless, widespread public reservations have led to a complex
system of regulations. Overregulation has become a real threat for
the further development and use of GM crops. The costs in terms
of foregone benefits may be large, especially for developing
countries. Economics research has an important role to play in
designing efficient regulatory mechanisms and agricultural innovation
systems.