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Quality, market mechanisms and regulation in the food chain

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  • Marette, Stephan

Abstract

This paper focuses on questions related to the regulation of quality in the food chain. The paper first recalls the new challenges related to quality in the food chain, with an emphasis on the issue of sustainability. This first part underlines that the numerous dimensions related to sustainability make the regulation necessary but difficult. Then the paper introduces a partial equilibrium model calibrated with empirical data, for helping evaluate which regulatory instrument should be socially preferred ex ante on a case-by-case basis. An application to the milk market focuses on linseed for feeding dairy cows, which reduces methane emissions and increases the omega-3 content of milk. Simulations compare the impact of the exclusive use of one label signaling omega-3, versus the impact of a minimum-quality standard imposing linseed in the diet of all dairy cows. Both instruments would have a positive impact on consumers’ surpluses and some producers’ profits. This application shows that details about the influence of regulatory tools on surpluses may be given on a case-by-case basis.

Suggested Citation

  • Marette, Stephan, 2017. "Quality, market mechanisms and regulation in the food chain," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), vol. 5(3), February.
    • Handle: RePEc:ags:aieabj:276278
    DOI: 10.22004/ag.econ.276278
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    References listed on IDEAS

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    1. Jutta Roosen & Stéphan Marette, 2011. "Making the "right" choice based on experiments: regulatory decisions for food and health," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 38(3), pages 361-381, August.
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    3. Marette, Stéphan & Millet, Guy, 2014. "Economic benefits from promoting linseed in the diet of dairy cows for reducing methane emissions and improving milk quality," Food Policy, Elsevier, vol. 46(C), pages 140-149.
    4. Disdier, Anne-Célia & Marette, Stéphan & Millet, Guy, 2013. "Are consumers concerned about palm oil? Evidence from a lab experiment," Food Policy, Elsevier, vol. 43(C), pages 180-189.
    5. Olivier Bonroy & Christos Constantatos, 2015. "On the Economics of Labels: How Their Introduction Affects the Functioning of Markets and the Welfare of All Participants," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 97(1), pages 239-259.
    6. Stéphan Marette, 2007. "Minimum safety standard, consumers’ information and competition," Journal of Regulatory Economics, Springer, vol. 32(3), pages 259-285, December.
    7. Anne-Célia Disdier & Stéphan Marette, 2012. "Taxes, minimum-quality standards and/or product labeling to improve environmental quality and welfare: Experiments can provide answers," Journal of Regulatory Economics, Springer, vol. 41(3), pages 337-357, June.
    8. Anne-Célia Disdier & Stéphan Marette, 2010. "The Combination of Gravity and Welfare Approaches for Evaluating Nontariff Measures," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 92(3), pages 713-726.
    9. Marette Stéphan & Roosen Jutta & Blanchemanche Sandrine, 2011. "The Combination of Lab and Field Experiments for Benefit-Cost Analysis," Journal of Benefit-Cost Analysis, De Gruyter, vol. 2(3), pages 1-36, August.
    10. Stéphan Marette, 2010. "Consumer confusion and multiple equilibria," Economics Bulletin, AccessEcon, vol. 30(2), pages 1120-1128.
    11. Rousu, Matthew C. & Marette, Stéphan & Thrasher, James F. & Lusk, Jayson L., 2014. "The economic value to smokers of graphic warning labels on cigarettes: Evidence from combining market and experimental auction data," Journal of Economic Behavior & Organization, Elsevier, vol. 108(C), pages 123-134.
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    22. Stéphan Marette & Jutta Roosen & Sandrine Blanchemanche, 2008. "Taxes and subsidies to change eating habits when information is not enough: an application to fish consumption," Journal of Regulatory Economics, Springer, vol. 34(2), pages 119-143, October.
    23. Bonroy, Olivier & Lemarié, Stéphane, 2012. "Downstream labeling and upstream price competition," European Economic Review, Elsevier, vol. 56(3), pages 347-360.
    24. Disdier, Anne-Célia & Marette, Stéphan & Millet, Guy, 2013. "Are consumers concerned about palm oil? Evidence from a lab experiment," Food Policy, Elsevier, vol. 43(C), pages 180-189.
    25. Olivier Bonroy & Stephane Lemarié, 2012. "Downstream labeling and upstream price competition," Post-Print hal-01340829, HAL.
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    30. Marette, Stéphan & Martin, Christophe & Bouillot, Fabienne, 2017. "Two experiments in one: How accounting for context matters for welfare estimates," Food Policy, Elsevier, vol. 66(C), pages 12-24.
    31. repec:hal:journl:halshs-00916437 is not listed on IDEAS
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