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Impact Evaluation of Food Safety Regulations: A Review of Quantitative Methods

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  • Ragona, Maddalena
  • Mazzocchi, Mario

Abstract

Recently regulatory evaluation performed by the European Commission has been reviewed in response to the call for more evidence-based policy making and “Better Regulation”, which requires instruments to support the adoption of more effective and efficient regulations, as well as an improved coordination of policy interventions across the economic, social and environmental dimensions (European Commission, 2002). At the same time, there is a demand for clarity in the methods used to evaluate the impacts of regulations. While there is an ongoing debate on the methodological frameworks that are or could be used to assess the overall impact of regulations, our focus here is on the quantitative techniques that measure the economic effects and estimate the monetary values of non-market effects. This is especially relevant in policy areas like that of food safety, where a wide variety of alternative techniques are used to measure the same impact, often with very different or even conflicting results. Food safety regulations generate different effects to different economic actors along the food chain, covering more than a policy area, like health protection, competition, trade and environment. The aim of this study is to review and discuss the quantitative methodologies applied to assess the socio-economic impacts of food safety regulations in a selection of studies found in the literature available to date1. The paper is structured as follows. First, we propose a classification of potential impacts relevant in food safety regulations, based on the European Commission Impact Assessment Guidelines (2005). Then, we associate each impact with the methodologies used in the literature. An overview of the methodologies is presented, highlighting strengths and weaknesses; methodologies not currently used but potentially exploitable in food safety regulatory assessments are briefly described. In the fourth section, we add further information about the evaluation studies, by specifying stage of assessment, level of analysis, type of data required, and geographical scope of analysis. Final considerations conclude the review.

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Bibliographic Info

Paper provided by European Association of Agricultural Economists in its series 110th Seminar, February 18-22, 2008, Innsbruck-Igls, Austria with number 49887.

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Date of creation: Oct 2008
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Handle: RePEc:ags:eea110:49887

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Keywords: Agribusiness; Agricultural and Food Policy; Farm Management; Food Consumption/Nutrition/Food Safety; Industrial Organization;

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  1. Kuchler, Fred & Golan, Elise H., 1999. "Assigning Values To Life: Comparing Methods For Valuing Health Risks," Agricultural Economics Reports 34037, United States Department of Agriculture, Economic Research Service.
  2. Sven Anders & Julie Caswell, 2007. "Standards-as-Barriers versus Standards-as-Catalysts: Assessing the Impact of HACCP Implementation on U.S. Seafood Imports," Working Papers 2007-7, University of Massachusetts Amherst, Department of Resource Economics.
  3. Tongeren, Frank van & Meijl, Hans van & Surry, Yves, 2001. "Global models applied to agricultural and trade policies: a review and assessment," Agricultural Economics: The Journal of the International Association of Agricultural Economists, International Association of Agricultural Economists, vol. 26(2), November.
  4. Fox, John A. & Shogren, J. & Hayes, Dermot J. & Kliebenstein, James, 1995. "Experimental Auctions to Measure Willingness to Pay for Food Safety," Staff General Research Papers 5343, Iowa State University, Department of Economics.
  5. Jutta Roosen & David A. Hennessy, 2001. "Capturing Experts' Uncertainty in Welfare Analysis: An Application to Organophosphate use Regulation in U.S. Apple Production," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(1), pages 166-182.
  6. Buzby, Jean C. & Skees, Jerry R. & Ready, Richard C., 1995. "Chapter 12: USING CONTINGENT VALUATION TO VALUE FOOD SAFETY: A CASE STUDY OF GRAPEFRUIT AND PESTICIDE RESIDUES," Valuing Food Safety and Nutrition (1995), Regional Research Project NE-165 Private Strategies, Public Policies, and Food System Performance, number 25972.
  7. Gasiorek, Michael & Smith, Alasdair & Venables, Anthony J., 1992. "`1992': Trade and Welfare; A General Equilibrium Model," CEPR Discussion Papers 672, C.E.P.R. Discussion Papers.
  8. Crutchfield, Stephen R. & Buzby, Jean C. & Roberts, Tanya & Ollinger, Michael & Lin, Chung-Tung Jordan, 1997. "Economic Assessment of Food Safety Regulations: The New Approach to Meat and Poultry Inspection," Agricultural Economics Reports 34009, United States Department of Agriculture, Economic Research Service.
  9. van Tongeren, Frank & van Meijl, Hans & Surry, Yves, 2001. "Global models applied to agricultural and trade policies: a review and assessment," Agricultural Economics, Blackwell, vol. 26(2), pages 149-172, November.
  10. Mario F. Teisl & Nancy E. Bockstael & Alan Levy, 2001. "Measuring the Welfare Effects of Nutrition Information," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(1), pages 133-149.
  11. Roberts, Donna & Josling, Timothy E. & Orden, David, 1999. "A Framework for Analyzing Technical Trade Barriers in Agricultural Markets," Technical Bulletins 33560, United States Department of Agriculture, Economic Research Service.
  12. Ollinger, Michael & Moore, Danna L. & Chandran, Ram, 2004. "Meat And Poultry Plants' Food Safety Investments: Survey Findings," Technical Bulletins 33559, United States Department of Agriculture, Economic Research Service.
  13. Fox, John A. & Shogren, Jason F. & Hayes, Dermot J. & Kliebenstein, James B., 1995. "Chapter 06: EXPERIMENTAL AUCTIONS TO MEASURE WILLINGNESS TO PAY FOR FOOD SAFETY," Valuing Food Safety and Nutrition (1995), Regional Research Project NE-165 Private Strategies, Public Policies, and Food System Performance, number 25986.
  14. Hayri �nal & Laurian Unnevehr & Aleksandar Bekric, 2000. "Regional Shifts in Pork Production: Implications for Competition and Food Safety," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(4), pages 968-978.
  15. Caswell, Julie A., 1998. "Valuing the benefits and costs of improved food safety and nutrition," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 42(4), December.
  16. Nganje, William E. & Mazzocco, Michael A. & McKeith, Floyd K., 1999. "Food Safety Regulation, Product Pricing, And Profitability: The Case Of Haccp," AE Series 23077, North Dakota State University, Department of Agribusiness and Applied Economics.
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