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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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Author Info
Diez, M. Carmen Fernandez
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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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. 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. [Downloadable!] (restricted)
  2. Sergio H. Lence & Dermot J. Hayes, 2001. "Response to an Asymmetric Demand for Attributes: An Application to the Market for Genetically Modified Crops," Midwest Agribusiness Trade Research and Information Center (MATRIC) Publications 01-mwp5, Midwest Agribusiness Trade Research and Information Center (MATRIC) at Iowa State University. [Downloadable!]
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  3. Lapan, Harvey E. & Moschini, GianCarlo, 2002. "Innovation and Trade with Endogenous Market Failure: The Case of Genetically Modified Products," Staff General Research Papers 2109, Iowa State University, Department of Economics. [Downloadable!]
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  4. Meijl, Hans van & Tongeren, Frank van, 2004. "International diffusion of gains from biotechnology and the European Union's Common Agricultural Policy," Agricultural Economics, Blackwell, vol. 31(2-3), pages 307-316, December. [Downloadable!] (restricted)
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  5. David Godden, 2000. "GMOs and IP: embodied technological change," Journal of International Development, John Wiley & Sons, Ltd., vol. 12(8), pages 1179-1182. [Downloadable!]
  6. Ian M. Sheldon, 2002. "Regulation of biotechnology: will we ever 'freely' trade GMOs?," European Review of Agricultural Economics, Oxford University Press for the Foundation for the European Review of Agricultural Economics, vol. 29(1), pages 155-176, March.
  7. Lence, Sergio H. & Hayes, Dermot J., 2004. "Impact of Biotech Grains on Market Structure and Societal Welfare," Staff General Research Papers 11919, Iowa State University, Department of Economics.
  8. 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. [Downloadable!] (restricted)
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