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Peanut trade and aflatoxin standards in Europe: Economic effects on trading countries

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  • Agyekum, Michael
  • Jolly, Curtis M.

Abstract

The role of aflatoxin contamination in food safety is an important policy issue impacting food industries worldwide. This paper evaluates the economic implications of strict peanut aflatoxin regulation in Europe focusing on price and quantity effects of the policy. Equilibrium displacement modeling is applied on a source-differentiated market. Findings show that regulation tightening leads to price and quantity drop for the United States and other exporters, whereas China benefits owing to its price and quantity gains. Although both peanut exporters and importers share compliance costs from the aflatoxin policy, consumers in Europe pay a greater proportion of the costs.

Suggested Citation

  • Agyekum, Michael & Jolly, Curtis M., 2017. "Peanut trade and aflatoxin standards in Europe: Economic effects on trading countries," Journal of Policy Modeling, Elsevier, vol. 39(1), pages 114-128.
    • Handle: RePEc:eee:jpolmo:v:39:y:2017:i:1:p:114-128
    DOI: 10.1016/j.jpolmod.2016.08.004
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    Cited by:

    1. Vural, Burçak Müge & Akgüngör, E. Sedef, 2019. "Quantifying the Trade and Welfare Effects of EU Aflatoxin Regulations on the Dried Fruit Industry," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 68(2), June.

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    More about this item

    Keywords

    Equilibrium displacement models; Policy incidence; Aflatoxin regulations; Food trade; Europe;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy

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