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Traceability, Liability and Incentives for Food Safety and Quality

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  • Pouliot, Sebastien
  • Sumner, Daniel A.

Abstract

In this paper we focus specifically on the implications for additional traceability in the context of liability for food safety problems. We model formally the linkage between traceability and food safety and establish the implications of an increase in traceability-liability for food safety and related economic outcomes. The capacity to trace the origin of food increases the possibility of legal remedy and compensation in case of food safety event. Traceability also allows parties to more easily document that they are not responsible for harm. Therefore, traceability systems create incentives for firms to supply safer food.

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File URL: http://purl.umn.edu/21121
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Bibliographic Info

Paper provided by American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) in its series 2006 Annual meeting, July 23-26, Long Beach, CA with number 21121.

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Date of creation: 2006
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Handle: RePEc:ags:aaea06:21121

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Keywords: Food Consumption/Nutrition/Food Safety;

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References

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  1. Marcel Boyer & Donatella Porrini, 2002. "Modeling the Choice Between Regulation and Liability in Terms of Social Welfare," CIRANO Working Papers 2002s-13, CIRANO.
  2. Brian Roe, 2004. "Optimal Sharing of Foodborne Illness Prevention between Consumers and Industry: The Effect of Regulation and Liability," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(2), pages 359-374.
  3. Steven Shavell & A. Mitchell Polinsky, 2000. "The Economic Theory of Public Enforcement of Law," Journal of Economic Literature, American Economic Association, vol. 38(1), pages 45-76, March.
  4. Hobbs, Jill E., 2004. "Traceability in the Canadian Red Meat Sector," Economic and Market Information 55304, Agriculture and Agri-Food Canada.
  5. Hiriart, Yolande & Martimort, David & Pouyet, Jerome, 2004. "On the optimal use of ex ante regulation and ex post liability," Economics Letters, Elsevier, vol. 84(2), pages 231-235, August.
  6. Jill E. Hobbs & DeeVon Bailey & David L. Dickinson & Morteza Haghiri, 2005. "Traceability in the Canadian Red Meat Sector: Do Consumers Care?," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 53(1), pages 47-65, 03.
  7. Kolstad, Charles D & Ulen, Thomas S & Johnson, Gary V, 1990. "Ex Post Liability for Harm vs. Ex Ante Safety Regulation: Substitutes or Complements?," American Economic Review, American Economic Association, vol. 80(4), pages 888-901, September.
  8. Buzby, Jean C. & Frenzen, Paul D., 1999. "Food safety and product liability," Food Policy, Elsevier, vol. 24(6), pages 637-651, December.
  9. Golan, Elise H. & Krissoff, Barry & Kuchler, Fred & Calvin, Linda & Nelson, Kenneth E. & Price, Gregory K., 2004. "Traceability In The U.S. Food Supply: Economic Theory And Industry Studies," Agricultural Economics Reports 33939, United States Department of Agriculture, Economic Research Service.
  10. Frenzen, Paul D. & Buzby, Jean C. & Rasco, Barbara, 2001. "Product Liability And Microbial Foodborne Illness," Agricultural Economics Reports 34059, United States Department of Agriculture, Economic Research Service.
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Citations

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Cited by:
  1. Alexander E. Saak, 2012. "Collective Reputation, Social Norms, and Participation," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 94(3), pages 763-785.
  2. Nganje, William E. & Skilton, Paul F. & Jensen, Helen H. & Onyeaghala, Raphael, 2011. "Traceability in Food Systems: An Economic Analysis of LGMA and the 2006 Spinach Outbreak," 85th Annual Conference, April 18-20, 2011, Warwick University, Coventry, UK 108776, Agricultural Economics Society.
  3. Zheng, Zijuan & Saghaian, Sayed H. & Reed, Michael R., 2012. "Factors Affecting the Export Demand for U.S. Pistachios," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association (IAMA), vol. 15(3).
  4. Bulut, Harun & Lawrence, John D., 2007. "Meat Slaughter and Processing Plants’ Traceability Levels Evidence From Iowa," 2007 Conference, April 16-17, 2007, Chicago, Illinois 37576, NCCC-134 Conference on Applied Commodity Price Analysis, Forecasting, and Market Risk Management.
  5. Resende-Filho, Moises & Buhr, Brian, 2007. "Economics of traceability for mitigation of food recall costs," MPRA Paper 3650, University Library of Munich, Germany.
  6. Pouliot, Sebastien, 2010. "Welfare Effects of Mandatory Traceability When Firms are Heterogeneous," 2010 Annual Meeting, July 25-27, 2010, Denver, Colorado 61017, Agricultural and Applied Economics Association.
  7. Ng, Desmond W. & Salin, Victoria, 2012. "An Institutional Approach to the Examination of Food Safety," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association (IAMA), vol. 15(2).
  8. Pouliot, Sebastien, 2008. "Estimating the Costs and Benefits of Cattle Traceability: the Case of the Quebec Cattle Traceability System," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6522, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  9. Pouliot, Sébastien, 2012. "On the Economics of Adulteration in Food Imports: Application to US Fish and Seafood Imports," Working Papers 148596, Structure and Performance of Agriculture and Agri-products Industry (SPAA).
  10. Fritz, Melanie & Schiefer, Gerhard, 2009. "Tracking, tracing, and business process interests in food commodities: A multi-level decision complexity," International Journal of Production Economics, Elsevier, vol. 117(2), pages 317-329, February.
  11. Rouviere, Elodie & Soubeyran, Raphael, 2012. "Small is Beautiful? Firm's Size, Prevention & Food Safety," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 123410, Agricultural and Applied Economics Association.
  12. Ng, Desmond W. & Salin, Victoria, 2012. "An Institutional Approach to the Examination of Food Safety," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association (IAMA), vol. 15(2).
  13. Bailey, DeeVon, 2007. "Political Economy of the U.S. Cattle and Beef Industry: Innovation Adoption and Implications for the Future," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 32(03), December.
  14. Souza Monteiro, Diogo M. & Caswell, Julie A., 2008. "Optimal choice of Voluntary traceability as a food risk management tool," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44394, European Association of Agricultural Economists.

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