Transgenic crops and the environment: missing markets and public roles

The rapidity of change has left scant opportunity for investigation of the consequences of adoption of transgenic crops on long-term ecosystem or econ omic system functioning. Economic theory suggests that, if the "Biotechnolo gy Revolution" is left to market forces alone, there will be neglected publ ic goods. Theory and limited empirical evidence suggests that there are sig nificant incentives for private firms to discount and neglect certain envir onmental impacts and to develop products that meet mainly the needs of thos e able and willing to pay. Negative distributional impacts on rural societi es and economies will not normally enter the private calculus nor will the long-term problems of insect and plant resistance. Thus, there is a strong case for enhanced public roles with respect to the use of transgenic crops, The adoption of the precautionary approach in public policies addressing t ransgenic crops is one alternative to better reflect public concerns.