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Environment and Food Safety in Agriculture: Are Labels Efficient?

Author

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  • Lisette Ibanez
  • Anne Stenger

Abstract

In this article, we try to elicit whether an information on food safety is consistent with a more environmental‐friendly agriculture. As the policy makers generally intervene to limit negative externalities in agriculture on the supply side, is a labelling policy an efficient way to reduce pollution levels in this sector? The intuitive reason of a food safety label rests on the fact that consumers seem to be more concerned with information on food safety aspects than on environmental ones. In a vertical differentiation model, we analyse the impacts of labels mentioning food safety and environmental aspects, on firms' profits, consumers' surplus and pollution levels. Given our main assumption that food safety and environmental consequences are directly linked, our principal results show that a labelling policy on food safety can be efficient from an environmental point of view, depending on the initial healthy products proportion in the market. Another result is based on the fact that a label policy can reduce consumer's surplus.

Suggested Citation

  • Lisette Ibanez & Anne Stenger, 2000. "Environment and Food Safety in Agriculture: Are Labels Efficient?," Australian Economic Papers, Wiley Blackwell, vol. 39(4), pages 452-464, December.
  • Handle: RePEc:bla:ausecp:v:39:y:2000:i:4:p:452-464
    DOI: 10.1111/1467-8454.00104
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    Citations

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    Cited by:

    1. Bodo E. Steiner, 2004. "Australian wines in the British wine market: A hedonic price analysis," Agribusiness, John Wiley & Sons, Ltd., vol. 20(3), pages 287-307.
    2. Adel Ben Youssef & Rim Lahmandi-Ayed, 2008. "Eco-labelling, Competition and Environment: Endogenization of Labelling Criteria," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 41(2), pages 133-154, October.
    3. Steiner, Bodo E., 2002. "The Valuation Of Labelling Attributes In A Wine Market," 2002 Annual meeting, July 28-31, Long Beach, CA 19718, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    4. Larceneux, Fabrice & Carpenter, Marie, 2008. "Third party labeling and the consumer decision process," HEC Research Papers Series 891, HEC Paris.
    5. Hammoudi, Abdelhakim & Nguyen, Huong-Hue & Soler, Louis-Georges, 2009. "Food safety and nutritional quality – Firms’ strategies and Public intervention," 2009 Conference, August 16-22, 2009, Beijing, China 51749, International Association of Agricultural Economists.
    6. Lucie Bottega & Jenny De Freitas, 2009. "Public, Private and Nonprofit Regulation for Environmental Quality," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 18(1), pages 105-123, March.
    7. Grolleau, Gilles & Ibanez, Lisette & Mzoughi, Naoufel, 2009. "Too much of a good thing? Why altruism can harm the environment?," Ecological Economics, Elsevier, vol. 68(7), pages 2145-2149, May.
    8. repec:dau:papers:123456789/12755 is not listed on IDEAS
    9. Cole, Anne & Harris, Jane, 2005. "Rising interest in credence qualities in agricultural products and the role for government," 2005 Conference (49th), February 9-11, 2005, Coff's Harbour, Australia 137828, Australian Agricultural and Resource Economics Society.
    10. Markova-Nenova, Nonka & Wätzold, Frank, 2018. "Fair to the cow or fair to the farmer? The preferences of conventional milk buyers for ethical attributes of milk," Land Use Policy, Elsevier, vol. 79(C), pages 223-239.
    11. Francesco Manta & Valeria Stefanelli & Vittorio Boscia, 2023. "Spread the word: Certifying sustainable behaviour for territorial development. A stakeholder engagement approach to assess financial performance," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(3), pages 1096-1103, May.

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