GMO approvals under pressure: How climate shocks shape policy across nations

PLOS One | https://doi.org/10.1371/journal.pone.0332298 October 22, 2025 4 / 20 paper differentiates GMO and non-GMO sectors in terms of capital allocation is although the production processes of using GMO or non-GMO are very similar, the research and innovation intensity of GM technology (e.g., transgenic plant breeding) is distinct in both sectors, for example, GMO sector is more subject to investments in research, technology, and infrastructure [18]. Thus, this paper emphasizes that Equation (4) replies on the technology adoption process where a country with different θi earns distinct profits in conventional and GMO sectors. The relative prices of two sectors is ps i p–s i = n–s i A–s i α( L–s i K–s i ) 1–α ns i As i α( Ls i Ks i ) 1–α = n–s i n s i A–s i A s i (θi )1–α. In terms of prices, following prior work [15], the model assumes countries differ in their relative productivities across both sectors in both countries, and normalize (qs)η (q–s)1–η = 1 (5) The prices of GMO and non-GMO consumption basket thus can be numeraire (ps i )η (p–s i )1–η = 1, and prices are equal to    ps i = ( n–s i n s i A–s i A s i )1–η (θi )(1–α)(1–η) p–s i = ( n–s i ns i A–s i As i )–η (θi )–(1–α)η (6) The first order condition of πl i with respect to Kl i yields that r i pl i = nl i Al iα( L l i K l i )1–α , where p l i is the aggregate price of sector l in country i . Combining Equation (6), the return to capital is obtained as ri = ns i As i α( 1 + θi θi ) 1–α ( n–s i n s i A–s i As i ) 1–η (θi )(1–α)(1–η) (7) Similarly, the first order condition of πl i with respect to L l

i yields wi pl i = nl i A l i(1 – α)( Kl i Ll i )α . The relative prices of two sectors is ps i p–s i = n–s i A–s i ( K–s i L–s i ) α ns i As i ( Ks i Ls i ) α = n–s i A–s i n s i As i ( 1 θi )α. Labor wage is wi = ns i As i (1 – α) ( θi 1 + θi )α ( n–s i A–s i ns i As i )1–η ( 1 θi )α(1–η) (8) 2.3. Market clearance For market clearance, the total expenditure of sector l in both countries is equal to the total income derived from labor wages and capital returns in both countries. Given the Cobb-Douglas specification of the consumption bundle in Equation (3), total expenditure in the GMO and non-GMO sectors can be expressed as: p s j C s j = τ [∑ i (ri K s i + wi )] and p–s j C–s j = (1 – τ )[∑ i (ri Ks i + wi )]. Market clearance also implies aggregate consumption of sector l equalizes aggregate production [19], that is, ∑ i [pS i AS i K S i αLS i 1–α] = τ [∑ i (ri Ks i + wi)] (9) This model defines country i ’s technological or Ricardian comparative advantage in non-GMO commodities as γi = n–s i A–s i /ns i As i n–s j A–s j /ns j As j .