IDEAS home Printed from https://ideas.repec.org/a/wly/agribz/v39y2023i1p263-284.html
   My bibliography  Save this article

Multiplicity of sustainability standards and potential trade costs in the palm oil industry

Author

Listed:
  • Laura M. G. Hidalgo
  • Rosane N. de Faria
  • Roberta Souza Piao
  • Christine Wieck

Abstract

The growing impact of the global production of agricultural commodities has created new regulations that aim at a more sustainable trade. Sustainability standards (SS) are essential tools for transnational trade governance because they increase the possibility of recognizing products from sustainable sources. However, there is currently a proliferation of SS in almost every industry. This paper proposes a conceptual framework to establish how standard interactions such as competition, cooperation, and overlap shape the impact of multiplicity on trade costs. We apply the framework to the palm oil industry by using the information on three aspects of SS schemes: the requirements, the institutional design, and the cooperation strategies. Our results indicate that the North–South multiplicity in the palm oil market is characterized by high overlap, but there exists a balanced co‐opetition in the standard market. As the cooperation strategies between the SS schemes are very shallow, there might be potential trade costs associated with the SS multiplicity in the palm oil industry. [EconLit Citations: Q01 Sustainable Development, Q17 Agriculture in International Trade, Q18 Agricultural PolicyFood Policy].

Suggested Citation

  • Laura M. G. Hidalgo & Rosane N. de Faria & Roberta Souza Piao & Christine Wieck, 2023. "Multiplicity of sustainability standards and potential trade costs in the palm oil industry," Agribusiness, John Wiley & Sons, Ltd., vol. 39(1), pages 263-284, January.
    • Handle: RePEc:wly:agribz:v:39:y:2023:i:1:p:263-284
    DOI: 10.1002/agr.21768
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/agr.21768
    Download Restriction: no
    File URL: https://libkey.io/10.1002/agr.21768?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Philip Schleifer, 2016. "Private Governance Undermined: India and the Roundtable on Sustainable Palm Oil," Global Environmental Politics, MIT Press, vol. 16(1), pages 38-58, February.
    2. Henson, Spencer & Masakure, Oliver & Cranfield, John, 2011. "Do Fresh Produce Exporters in Sub-Saharan Africa Benefit from GlobalGAP Certification?," World Development, Elsevier, vol. 39(3), pages 375-386, March.
    3. Joanna Cygler & Włodzimierz Sroka & Marina Solesvik & Katarzyna Dębkowska, 2018. "Benefits and Drawbacks of Coopetition: The Roles of Scope and Durability in Coopetitive Relationships," Sustainability, MDPI, vol. 10(8), pages 1-24, August.
    4. repec:ner:leuven:urn:hdl:123456789/335950 is not listed on IDEAS
    5. Dela‐Dem Doe Fiankor & Inmaculada Martínez‐Zarzoso & Bernhard Brümmer, 2019. "Exports and governance: the role of private voluntary agrifood standards," Agricultural Economics, International Association of Agricultural Economists, vol. 50(3), pages 341-352, May.
    6. Liesbeth Colen & Miet Maertens & Johan Swinnen, 2012. "Private Standards, Trade and Poverty: GlobalGAP and Horticultural Employment in Senegal," The World Economy, Wiley Blackwell, vol. 35(8), pages 1073-1088, August.
    7. Dela-Dem Doe Fiankor & Insa Flachsbarth & Amjad Masood & Bernhard Brümmer, 2020. "Does GlobalGAP certification promote agrifood exports? [Standards as barriers versus standards as catalysts: assessing the impact of HACCP implementation on US seafood imports]," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 47(1), pages 247-272.
    8. Henk Kox & Arjan Lejour, 2005. "Regulatory heterogeneity as obstacle for international services trade," CPB Discussion Paper 49, CPB Netherlands Bureau for Economic Policy Analysis.
    9. Dietz, Thomas & Auffenberg, Jennie & Estrella Chong, Andrea & Grabs, Janina & Kilian, Bernard, 2018. "The Voluntary Coffee Standard Index (VOCSI). Developing a Composite Index to Assess and Compare the Strength of Mainstream Voluntary Sustainability Standards in the Global Coffee Industry," Ecological Economics, Elsevier, vol. 150(C), pages 72-87.
    10. Nia Kurniawati Hidayat & Astrid Offermans & Pieter Glasbergen, 2018. "Sustainable palm oil as a public responsibility? On the governance capacity of Indonesian Standard for Sustainable Palm Oil (ISPO)," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 35(1), pages 223-242, March.
    11. Matteo Fiorini & Bernard Hoekman & Marion Jansen & Philip Schleifer & Olga Solleder & Regina Taimasova & Joseph Wozniak, 2019. "Institutional design of voluntary sustainability standards systems: Evidence from a new database," Development Policy Review, Overseas Development Institute, vol. 37(S2), pages 193-212, July.
    12. Vigani, Mauro & Raimondi, Valentina & Olper, Alessandro, 2012. "International trade and endogenous standards: the case of GMO regulations," World Trade Review, Cambridge University Press, vol. 11(3), pages 415-437, July.
    13. De Faria, Rosane Nunes & Wieck, Christine, 2016. "Regulatory Differences in the Approval of GMOs: Extent and Development over Time," World Trade Review, Cambridge University Press, vol. 15(1), pages 85-108, January.
    14. Meemken, Eva-Marie, 2021. "Large farms, large benefits? Sustainability certification among family farms and agro-industrial producers in Peru," World Development, Elsevier, vol. 145(C).
    15. Burnquist, Heloisa Lee & Shutes, Karl & Rau, Marie-Luise & Souza, Mauricio Jorge Pinto de & Faria, Rosane Nunes de, 2011. "Heterogeneity Index of Trade and Actual Heterogeneity Index – the case of maximum residue levels (MRLs) for pesticides," 2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania 103742, Agricultural and Applied Economics Association.
    16. Ehrich, Malte & Mangelsdorf, Axel, 2018. "The Role of Private Standards for Manufactured Food Exports from Developing Countries," World Development, Elsevier, vol. 101(C), pages 16-27.
    17. Chiputwa, Brian & Spielman, David J. & Qaim, Matin, 2015. "Food Standards, Certification, and Poverty among Coffee Farmers in Uganda," World Development, Elsevier, vol. 66(C), pages 400-412.
    18. Tad Mutersbaugh, 2005. "Fighting Standards with Standards: Harmonization, Rents, and Social Accountability in Certified Agrofood Networks," Environment and Planning A, , vol. 37(11), pages 2033-2051, November.
    19. Schleifer, Philip & Fiorini, Matteo & Fransen, Luc, 2019. "Missing the Bigger Picture: A Population-level Analysis of Transnational Private Governance Organizations Active in the Global South," Ecological Economics, Elsevier, vol. 164(C), pages 1-1.
    20. Karine Latouche & Emmanuelle Chevassus-Lozza, 2015. "Retailer Supply Chain and Market Access: Evidence From French Agri-food Firms Certified with Private Standards," The World Economy, Wiley Blackwell, vol. 38(8), pages 1312-1334, August.
    21. Anna Andersson, 2019. "The trade effect of private standards," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 46(2), pages 267-290.
    22. Guido Palazzo & Andreas Scherer, 2006. "Corporate Legitimacy as Deliberation: A Communicative Framework," Journal of Business Ethics, Springer, vol. 66(1), pages 71-88, June.
    23. Schouten, Greetje & Bitzer, Verena, 2015. "The emergence of Southern standards in agricultural value chains: A new trend in sustainability governance?," Ecological Economics, Elsevier, vol. 120(C), pages 175-184.
    24. Johan Swinnen, 2016. "Economics and politics of food standards, trade, and development," Agricultural Economics, International Association of Agricultural Economists, vol. 47(S1), pages 7-19, November.
    25. Luc Fransen & Thomas Conzelmann, 2015. "Fragmented or cohesive transnational private regulation of sustainability standards? A comparative study," Regulation & Governance, John Wiley & Sons, vol. 9(3), pages 259-275, September.
    26. Schuster, Monica & Maertens, Miet, 2015. "The Impact of Private Food Standards on Developing Countries’ Export Performance: An Analysis of Asparagus Firms in Peru," World Development, Elsevier, vol. 66(C), pages 208-221.
    27. Spencer Henson & Steven Jaffee, 2008. "Understanding Developing Country Strategic Responses to the Enhancement of Food Safety Standards," The World Economy, Wiley Blackwell, vol. 31(4), pages 548-568, April.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Dela-Dem Doe Fiankor & Insa Flachsbarth & Amjad Masood & Bernhard Brümmer, 2020. "Does GlobalGAP certification promote agrifood exports? [Standards as barriers versus standards as catalysts: assessing the impact of HACCP implementation on US seafood imports]," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 47(1), pages 247-272.
    2. Lijiao Hu & Yuqing Zheng & Timothy A. Woods & Yoko Kusunose & Steven Buck, 2023. "The market for private food safety certifications: Conceptual framework, review, and future research directions," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 45(1), pages 197-220, March.
    3. John C. Beghin & Miet Maertens & Johan Swinnen, 2017. "Nontariff Measures and Standards in Trade and Global Value Chains," World Scientific Book Chapters,in: Nontariff Measures and International Trade, chapter 2, pages 13-38 World Scientific Publishing Co. Pte. Ltd..
    4. John C. Beghin & Miet Maertens & Johan Swinnen, 2017. "Nontariff Measures and Standards in Trade and Global Value Chains," World Scientific Book Chapters, in: John Christopher Beghin (ed.), Nontariff Measures and International Trade, chapter 2, pages 13-38, World Scientific Publishing Co. Pte. Ltd..
    5. Chen, Yuquan & Fiankor, Dela-Dem Doe & Tan, Fuli, 2021. "An assessment of the effect of the Round Table on Responsible Soy certification on soybean exports," 2021 ASAE 10th International Conference (Virtual), January 11-13, Beijing, China 329433, Asian Society of Agricultural Economists (ASAE).
    6. José Carlos Marques & Burkard Eberlein, 2021. "Grounding transnational business governance: A political‐strategic perspective on government responses in the Global South," Regulation & Governance, John Wiley & Sons, vol. 15(4), pages 1209-1229, October.
    7. Annalisa Zezza & Federica Demaria & Maria Rosaria Pupo d'Andrea & Jo Swinnen & Giulia Meloni & Senne Vandevelde & Alessandro Olper & Daniele Curzi & Valentina Raimondi & Sophie Drogue, 2018. "Research for AGRI Committee - Agricultural trade: assessing reciprocity of standards," Working Papers hal-02787948, HAL.
    8. Neda Trifkovic, 2024. "Certifiable management standards, labor productivity, and worker wages: Evidence from the food sector in Vietnam," Agribusiness, John Wiley & Sons, Ltd., vol. 40(1), pages 161-184, January.
    9. Md Ali Emam & Markus Leibrecht & Tinggui Chen, 2022. "The Impact of a “National Green Export Review” on Competitiveness: Empirical Evidence for Ecuador’s Fish Exports," Agriculture, MDPI, vol. 13(1), pages 1-14, December.
    10. Dela-Dem Doe Fiankor & Daniele Curzi & Alessandro Olper, 2021. "Trade, price and quality upgrading effects of agri-food standards [Endogenous Trade Policy with Heterogeneous Firms]," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 48(4), pages 835-877.
    11. Dolabella, Marcelo & Saeteros, Mario, 2024. "Friends or Foes? The Impact of Voluntary Sustainability Standards on Agricultural Exports of Developing Countries," IDB Publications (Working Papers) 13764, Inter-American Development Bank.
    12. Monica Schuster & Miet Maertens, 2013. "8 Private Food Standards and Firm-Level Trade Effects: A Dynamic Analysis of the Peruvian Asparagus Export Sector," Frontiers of Economics and Globalization, in: Nontariff Measures with Market Imperfections: Trade and Welfare Implications, pages 187-213, Emerald Group Publishing Limited.
    13. Maertens, Miet & Swinnen, Johan, 2015. "Agricultural trade and development: A value chain perspective," WTO Staff Working Papers ERSD-2015-04, World Trade Organization (WTO), Economic Research and Statistics Division.
    14. Schleifer, Philip & Fiorini, Matteo & Fransen, Luc, 2019. "Missing the Bigger Picture: A Population-level Analysis of Transnational Private Governance Organizations Active in the Global South," Ecological Economics, Elsevier, vol. 164(C), pages 1-1.
    15. Hendrik Feyaerts & Goedele Van den Broeck & Miet Maertens, 2020. "Global and local food value chains in Africa: A review," Agricultural Economics, International Association of Agricultural Economists, vol. 51(1), pages 143-157, January.
    16. van der Ven, Hamish & Sun, Yixian & Cashore, Benjamin, 2021. "Sustainable commodity governance and the global south," Ecological Economics, Elsevier, vol. 186(C).
    17. Oya, Carlos & Schaefer, Florian & Skalidou, Dafni, 2018. "The effectiveness of agricultural certification in developing countries: A systematic review," World Development, Elsevier, vol. 112(C), pages 282-312.
    18. Hansen, Henrik & Trifković, Neda, 2014. "Food Standards are Good – For Middle-Class Farmers," World Development, Elsevier, vol. 56(C), pages 226-242.
    19. Trifković, Neda, 2017. "Spillover Effects of International Standards: Working Conditions in the Vietnamese SMEs," World Development, Elsevier, vol. 97(C), pages 79-101.
    20. Flachsbarth, Insa & Grassnick, Nina & Masood, Amjad & Bruemmer, Bernhard, 2018. "The Uneven Spread of Private Food Quality Standards over Time and Space," 2018 Annual Meeting, August 5-7, Washington, D.C. 274197, Agricultural and Applied Economics Association.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wly:agribz:v:39:y:2023:i:1:p:263-284. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://onlinelibrary.wiley.com/journal/10.1002/(ISSN)1520-6297 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.