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The Economics of Geographical Indications: Welfare Implications

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  • Tauber, Ramona
  • Anders, Sven
  • Langinier, Corinne

Abstract

The debate over the “right way” of protecting geographical indicators (GIs) has resulted in a growing body of literature investigating the welfare effects of GI policies using economic modelling approaches. This paper presents a synthesis of a small yet growing number of analytical studies on GIs. We find that modelling results and related policy conclusions hinge on different assumptions regarding consumer preferences, quality differentiation and weights attributed to producer or consumer welfare measures. Inconclusive results regarding a pareto-optimal design of GI policy leave several unresolved issues to researchers and policy makers assigned with the welfare implications of GI-based market interventions.

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Bibliographic Info

Paper provided by Structure and Performance of Agriculture and Agri-products Industry (SPAA) in its series Working Papers with number 103262.

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Date of creation: Apr 2011
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Handle: RePEc:ags:spaawp:103262

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Web page: http://servsas.fsaa.ulaval.ca/index.php?id=12482&L=1

Related research

Keywords: geographical indications; consumer preferences; welfare; policy; Agribusiness; Consumer/Household Economics; Industrial Organization; International Relations/Trade;

This paper has been announced in the following NEP Reports:

References

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  1. Lence, Sergio H. & Marette, Stephan & Hayes, Dermot J. & Forster, Bruce A., 2007. "Collective Marketing Arrangements for Geographically Differentiated Agricultural Products: Welfare Impacts and Policy Implications," Staff General Research Papers 12758, Iowa State University, Department of Economics.
  2. Giovannucci, Daniele & Josling, Timothy & Kerr, William & O'Connor, Bernard & Yeung, May T., 2009. "Guide to Geographical Indications: Linking Products and Their Origins (Summary)," MPRA Paper 27955, University Library of Munich, Germany.
  3. Philippe Mahenc, 2004. "Influence of Informed Buyers in Markets Susceptible to the Lemons Problem," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(3), pages 649-659.
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  5. Langinier, Corinne & Babcock, Bruce A., 2006. "Agricultural Production Clubs: Viability and Welfare Implications," Staff General Research Papers 12670, Iowa State University, Department of Economics.
  6. Crespi, John M. & Marette, Stephan, 2003. "Some Economic Implications Of Public Labeling," Journal of Food Distribution Research, Food Distribution Research Society, vol. 34(03), November.
  7. Moschini, GianCarlo & Menapace, Luisa & Pick, Daniel, 2008. "Geographical Indications and the Competitive Provision of Quality in Agricultural Markets," Staff General Research Papers 12858, Iowa State University, Department of Economics.
  8. Belletti, Giovanni & Burgassi, Tunia & Manco, Elisabetta & Marescotti, Andrea & Pacciani, Alessandro & Scaramuzzi, Silvia, 2007. "The roles of geographical indications (PDO and PGI) on the internationalisation process of agro-food products," 105th Seminar, March 8-10, 2007, Bologna, Italy 7851, European Association of Agricultural Economists.
  9. Lucie Bottega & Philippe Delacote & Lisette Ibanez, 2009. "Labeling Policies and Market Behavior: Quality Standard and Voluntary Label Adoption," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 7(2), pages 3.
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  11. Desquilbet, Marion & Hassan, Daniel & Monier-Dilhan, Sylvette, 2006. "Are Geographical Indications a Worthy Quality Signal? A Framework on Protected Designation of Origin with Endogenous Quality Choice," 2006 Annual meeting, July 23-26, Long Beach, CA 21466, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  12. Benavente, Daniela, 2010. "Geographical Indications: The Economics of Claw-Back," Miscellaneous Papers 119117, Agecon Search.
  13. Zago, Angelo M, 1999. "Quality and Self-Regulation in Agricultural Markets: How Do Producer Organisations Make the Rules?," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 26(2), pages 199-218, June.
  14. John Crespi & Stéphan Marette, 2002. "Generic Advertising and Product Differentiation," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(3), pages 691-701.
  15. Zohra Bouamra-Mechemache & Jad Chaaban, 2010. "Protected Designation of Origin Revisited," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 8(1), pages 5.
  16. Riccardo Scarpa & George Philippidis & Fiorenza Spalatro, 2005. "Product-country images and preference heterogeneity for Mediterranean food products: A discrete choice framework," Agribusiness, John Wiley & Sons, Ltd., vol. 21(3), pages 329-349.
  17. Zago, Angelo M. & Pick, Daniel H., 2004. "Labeling Policies in Food Markets: Private Incentives, Public Intervention, and Welfare Effects," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 29(01), April.
  18. Jayson L. Lusk & Jason Brown & Tyler Mark & Idlir Proseku & Rachel Thompson & Jody Welsh, 2006. "Consumer Behavior, Public Policy, and Country-of-Origin Labeling," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 28(2), pages 284-292.
  19. Bureau, Jean-Christophe & Valceschini, Egizio, 2003. "European Food-Labeling Policy: Successes And Limitations," Journal of Food Distribution Research, Food Distribution Research Society, vol. 34(03), November.
  20. Tina L. Saitone & Richard J. Sexton, 2010. "Impacts of Minimum Quality Standards Imposed Through Marketing Orders or Related Producer Organizations," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 92(1), pages 164-180.
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