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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.

Suggested Citation

  • Koen Dillen & Emanuele Ferrari & Pascal Tillie & George Philippidis & Sophie Helaine, 2013. "Contribution to the economic impact assessment of policy options to regulate animal cloning for food production with an economic simulation model," JRC Research Reports JRC79995, Joint Research Centre.
    • Handle: RePEc:ipt:iptwpa:jrc79995
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    More about this item

    Keywords

    Cloning; CGE; European policy; international trade; competitiveness;
    All these keywords.

    JEL classification:

    • F11 - International Economics - - Trade - - - Neoclassical Models of Trade
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • Q16 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - R&D; Agricultural Technology; Biofuels; Agricultural Extension Services
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy

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