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Environment and Food Safety in Agriculture: Are Labels Efficient?

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  • Ibanez, Lisette
  • Stenger, Anne

Abstract

In this article, we try to elicit whether an information on food safety is consistent with a more environmental-friendly agriculture. As the policy makers generally intervene to limit negative externalities in agriculture on the supply side, is a labeling policy an efficient way to reduce pollution levels in this sector? The intuitive reason of a food safety label rests on the fact that consumers seem to be more concerned with information on food safety aspects than on environmental ones. In a vertical differentiation model, we analyse the impacts of labels mentioning food safety and environmental aspects, on firms' profits, consumers' surplus and pollution levels. Given our main assumption that food safety and environmental consequences are directly linked, our principal results show that a labeling policy on food safety can be efficient from an environmental point of view, depending on the initial healthy products proportion in the market. Another result is based on the fact that a label policy can reduce consumer's surplus. Copyright 2000 by Blackwell Publishers Ltd/University of Adelaide and Flinders University of South Australia

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Bibliographic Info

Article provided by Wiley Blackwell in its journal Australian Economic Papers.

Volume (Year): 39 (2000)
Issue (Month): 4 (December)
Pages: 452-64

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Handle: RePEc:bla:ausecp:v:39:y:2000:i:4:p:452-64

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Web page: http://www.blackwellpublishing.com/journal.asp?ref=0004-900X

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Cited by:
  1. Adel Ben Youssef & Rim Lahmandi-Ayed, 2008. "Eco-labelling, Competition and Environment: Endogenization of Labelling Criteria," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 41(2), pages 133-154, October.
  2. Steiner, Bodo E., 2002. "The Valuation Of Labelling Attributes In A Wine Market," 2002 Annual meeting, July 28-31, Long Beach, CA 19718, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  3. Hammoudi, Abdelhakim & Nguyen, Huong-Hue & Soler, Louis-Georges, 2009. "Food safety and nutritional quality – Firms’ strategies and Public intervention," 2009 Conference, August 16-22, 2009, Beijing, China 51749, International Association of Agricultural Economists.
  4. Grolleau, Gilles & Ibanez, Lisette & Mzoughi, Naoufel, 2009. "Too much of a good thing? Why altruism can harm the environment?," Ecological Economics, Elsevier, vol. 68(7), pages 2145-2149, May.
  5. Lucie Bottega & Jenny De Freitas, 2009. "Public, Private and Nonprofit Regulation for Environmental Quality," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 18(1), pages 105-123, 03.
  6. Ben Youssef Adel & Abderrazak Chema, 2009. "Multiplicity of Eco-Labels, Competition, and the Environment," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 7(2), pages 1-24, December.
  7. Larceneux, Fabrice & Carpenter, Marie, 2008. "Third party labeling and the consumer decision process," Les Cahiers de Recherche 891, HEC Paris.
  8. Cole, Anne & Harris, Jane, 2005. "Rising interest in credence qualities in agricultural products and the role for government," 2005 Conference (49th), February 9-11, 2005, Coff's Harbour, Australia 137828, Australian Agricultural and Resource Economics Society.
  9. Bodo E. Steiner, 2004. "Australian wines in the British wine market: A hedonic price analysis," Agribusiness, John Wiley & Sons, Ltd., vol. 20(3), pages 287-307.
  10. Larceneux, Fabrice & Carpenter, Marie, 2008. "Third party labeling and the consumer decision process: the case of the PGI European label," Economics Papers from University Paris Dauphine 123456789/12755, Paris Dauphine University.

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