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Country of Origin Labeling: Evaluating the Impacts on U.S. and World Markets

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Author Info

  • Jones, Keithly G.
  • Somwaru, Agapi
  • Whitaker, James B.

Abstract

A provision of the Food, Conservation, and Energy Act of 2008 requires country of origin labeling (COOL) for certain agricultural commodities. To comply with the law, producers, processors, and retailers face additional production costs associated with labeling, separating, and tracking commodities. Using estimated costs provided by the U.S. Department of Agriculture’s Agricultural Marketing Service (AMS), we simulate the impacts of mandatory COOL on U.S. and global agricultural markets using a global static general equilibrium model (STAGEM). The results show resource adjustments that lead to decreases in production, consumption, and trade flows. The results assume no demand premium for labeled commodities relative to unlabeled commodities.

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Bibliographic Info

Article provided by Northeastern Agricultural and Resource Economics Association in its journal Agricultural and Resource Economics Review.

Volume (Year): 38 (2009)
Issue (Month): 3 (December)
Pages:

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Handle: RePEc:ags:arerjl:59253

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Web page: http://www.narea.org/
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Related research

Keywords: country of origin labeling; agricultural trade; global general equilibrium; Marketing;

References

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  1. Loureiro, Maria L. & Umberger, Wendy J., 2003. "Estimating Consumer Willingness to Pay for Country-of-Origin Labeling," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 28(02), August.
  2. Jayson L. Lusk & Jason Brown & Tyler Mark & Idlir Proseku & Rachel Thompson & Jody Welsh, 2006. "Consumer Behavior, Public Policy, and Country-of-Origin Labeling," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 28(2), pages 284-292.
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Citations

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Cited by:
  1. Saak, Alexander E., 2011. "A Model of Labeling with Horizontal Differentiation and Cost Variability," 2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania 103540, Agricultural and Applied Economics Association.
  2. Rude, James & Gervais, Jean-Philippe & Felt, Marie-Helene, 2010. "Detecting COOL Impacts on US-Canada Bilateral Hog and Pork Trade Flows," Trade Policy Briefs 102301, Canadian Agricultural Trade Policy Research Network.
  3. Chern, Wen S. & Chang, Chun-Yu, 2012. "Benefit evaluation of the country of origin labeling in Taiwan: Results from an auction experiment," Food Policy, Elsevier, vol. 37(5), pages 511-519.
  4. Markus Eberhardt & Zheng Wang & Zhihong Yu, 2014. "From One to Many Central Plans: Drug Advertising Inspections and Intra-National Protectionism in China," CESifo Working Paper Series 4682, CESifo Group Munich.
  5. Joseph, Siny & Lavoie, Nathalie & Caswell, Julie A., 2014. "Implementing COOL: Comparative welfare effects of different labeling schemes," Food Policy, Elsevier, vol. 44(C), pages 14-25.

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