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Contribution to the economic impact assessment of policy options to regulate animal cloning for food production with an economic simulation model

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Abstract

The EU is currently evaluating different policy options towards the use of cloning or products derived from cloned animals in the food chain. This study presents a first attempt to quantify the likely effects of different policy scenarios on international trade and EU domestic production. In the context of the Impact Asessment process the JRC was requested to simulate via a modelling study the economic impact of selected policy options. Based on a literature review and the specific constraints for this study, the choice was made to perform the analysis through the use of a computable general equilibrium model and focus on the dairy and beef sector. The different model scenarios are constructed based on combinations of the discussed policy options such as a ban or traceability and labelling requirements with the productivity increase associated with cloning. The results show that only the situation where trade with countries using the technique of cloning is suspended has an effect on competitiveness. This suspension could be due to express prohibitions or a de facto decision by exporters when traceability and labelling costs increase. Under this scenario imports drop significantly which is followed by a slight increase in domestic production and prices, especially for beef and cattle.

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Bibliographic Info

Paper provided by Institute for Prospective and Technological Studies, Joint Research Centre in its series JRC-IPTS Working Papers with number JRC79995.

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Length: 43 pages
Date of creation: Dec 2013
Date of revision:
Handle: RePEc:ipt:iptwpa:jrc79995

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Keywords: Cloning; CGE; European policy; international trade; competitiveness;

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  1. Robert M'barek & Wolfgang Britz & Alison Burrell & Jacques Delincé, 2012. "An integrated Modelling Platform for Agro-economic Commodity and Policy Analysis (iMAP) - a look back and the way forward," JRC-IPTS Working Papers JRC69667, Institute for Prospective and Technological Studies, Joint Research Centre.
  2. de Melo, Jaime & Robinson, Sherman, 1989. "Product differentiation and the treatment of foreign trade in computable general equilibrium models of small economies," Journal of International Economics, Elsevier, vol. 27(1-2), pages 47-67, August.
  3. Sherman Robinson & Hans Lofgren, 2005. "Macro Models and Poverty Analysis: Theoretical Tensions and Empirical Practice," Development Policy Review, Overseas Development Institute, vol. 23(3), pages 267-283, 05.
  4. Devaragan, Shantayanan & Lewis, Jeffrey D. & Robinson, Sherman, 1990. "Policy lessons from trade-focused, two-sector models," Journal of Policy Modeling, Elsevier, vol. 12(4), pages 625-657.
  5. Alison Burrell & Emanuele Ferrari & Aida González Mellado & Mihaly Himics & Jerzy Michalek & Shailesh Shrestha & Benjamin Van Doorslaer, 2011. "Potential EU-Mercosur Free Trade Agreement: Impact Assessment, Volume 1: Main results," JRC-IPTS Working Papers JRC67394, Institute for Prospective and Technological Studies, Joint Research Centre.
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