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Welfare Measures and Mandatory Regulation for Transgenic Food in the European Union: A Theoretical Framework for the Analysis

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  • Diez, Maria Del Carmen Fernandez
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    Abstract

    This paper presents an analytical framework for studying the impact of mandatory labelling regulation for transgenic food. We compare Genetically Modified (GM) and conventional crop markets and identify gains for food processors prior to mandatory labelling and losses after this measure for the GM market. Nevertheless, food processors could obtain gains for conventional products after market disgregation. Finally, consumers will be worse off both for conventional and GM foods unless qualities other than changes to prices are considered.

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    File URL: http://purl.umn.edu/24472
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    Bibliographic Info

    Paper provided by European Association of Agricultural Economists in its series 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark with number 24472.

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    Date of creation: 2005
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    Handle: RePEc:ags:eaae05:24472

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    Related research

    Keywords: welfare; mandatory labelling; transgenic; genetically modified organism; European Union policy; Agricultural and Food Policy; Q18; K32; D62;

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    1. Lence, Sergio H. & Hayes, Dermot J., 2001. "Response To An Asymmetric Demand For Attributes: An Application To The Market For Genetically Modified Crops," 2001 Conference, April 23-24, 2001, St. Louis, Missouri 18956, NCR-134 Conference on Applied Commodity Price Analysis, Forecasting, and Market Risk Management.
    2. Harvey E. Lapan & GianCarlo Moschini, 2002. "Innovation and Trade with Endogenous Market Failure: The Case of Genetically Modified Products," Center for Agricultural and Rural Development (CARD) Publications 02-wp302, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    3. Lence, Sergio H. & Hayes, Dermot J., 2002. "Impact of Biotech Grains on Market Structure and Societal Welfare," Staff General Research Papers 11919, Iowa State University, Department of Economics.
    4. Nicholas G. Kalaitzandonakes, 2000. "Agrobiotechnology and Competitiveness," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(5), pages 1224-1233.
    5. Akerlof, George A, 1970. "The Market for 'Lemons': Quality Uncertainty and the Market Mechanism," The Quarterly Journal of Economics, MIT Press, vol. 84(3), pages 488-500, August.
    6. David Godden, 2000. "GMOs and IP: embodied technological change," Journal of International Development, John Wiley & Sons, Ltd., vol. 12(8), pages 1179-1182.
    7. van Tongeren, Frank W. & van Meijl, Hans, 2003. "International Diffusion Of Gains From Biotechnology And The European Union'S Common Agricultural Policy," 2003 Annual Meeting, August 16-22, 2003, Durban, South Africa 25835, International Association of Agricultural Economists.
    8. Ian M. Sheldon, 2002. "Regulation of biotechnology: will we ever 'freely' trade GMOs?," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 29(1), pages 155-176, March.
    9. Giannakas, Konstantinos & Fulton, Murray, 2002. "Consumption effects of genetic modification: what if consumers are right?," Agricultural Economics, Blackwell, vol. 27(2), pages 97-109, August.
    10. S. Baranzoni & P. Bianchi & L. Lambertini, 2000. "Market Structure," Working Papers 368, Dipartimento Scienze Economiche, Universita' di Bologna.
    11. Demont, Matty & Tollens, Eric, 1999. "The Economics Of Agricultural Biotechnology: Historical And Analytical Framework," Working Papers 31845, Katholieke Universiteit Leuven, Centre for Agricultural and Food Economics.
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