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Welfare Effects of U.S. Liberty Link Rice Contamination

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  • Thompson, Jada
  • Wailes, Eric
  • Durand-Morat, Alvaro
  • Leister, Amanda

Abstract

United States consumer confidence in food safety is an increasingly more prominent issue in food production and marketing. Estimating the welfare effects of a breakdown in the supply chain can provide a benchmark for the cost of potential future events. In 2006, United States long grain rice stocks were contaminated with an unapproved genetically modified rice variety causing trade disruptions predominantly between the United States and the European Union. Using a spatial partial equilibrium model the economic effects of European policy on bilateral trade flows and prices during this event was an estimated loss of $421.3 million US dollars.

Suggested Citation

  • Thompson, Jada & Wailes, Eric & Durand-Morat, Alvaro & Leister, Amanda, 2015. "Welfare Effects of U.S. Liberty Link Rice Contamination," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 47(2), April.
    • Handle: RePEc:ags:joaaec:349007
    DOI: 10.22004/ag.econ.349007
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    1. Hertel, Thomas W. & Mark Horridge, J. & Pearson, K. R., 1992. "Mending the family tree a reconciliation of the linearization and levels schools of AGE modelling," Economic Modelling, Elsevier, vol. 9(4), pages 385-407, October.
    2. Durand-Morat, Alvaro & Wailes, Eric J., 2010. "Riceflow: a Multi-region, Multi-product, Spatial Partial Equilibrium Model of the World Rice Economy," Staff Papers 92010, University of Arkansas, Department of Agricultural Economics and Agribusiness.
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    2. Nalley, Lawton & Tsiboe, Francis & Durand-Morat, Alvaro & Thoma, Greg & Shew, Aaron, 2017. "The Economic Impact of Rice Sheath Blight Alleviation in the Mid‐South," 2017 Annual Meeting, February 4-7, 2017, Mobile, Alabama 251955, Southern Agricultural Economics Association.
    3. Tsiboe, Francis & Nalley, Lawton Lanier & Durand, Alvaro & Thoma, Greg & Shew, Aaron, . "The Economic and Environmental Benefits of Sheath Blight Resistance in Rice," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 42(2).

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