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Welfare Measures and Mandatory Regulation for Transgenic Food in the European Union: A Theoretical Framework for the Analysis

  • Diez, Maria Del Carmen Fernandez
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    This paper presents an analytical framework for studying the impact of mandatory labelling regulation for transgenic food. We compare Genetically Modified (GM) and conventional crop markets and identify gains for food processors prior to mandatory labelling and losses after this measure for the GM market. Nevertheless, food processors could obtain gains for conventional products after market disgregation. Finally, consumers will be worse off both for conventional and GM foods unless qualities other than changes to prices are considered.

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    File URL: http://purl.umn.edu/24472
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    Paper provided by European Association of Agricultural Economists in its series 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark with number 24472.

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    Date of creation: 2005
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    Handle: RePEc:ags:eaae05:24472
    Contact details of provider: Web page: http://www.eaae.org
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    1. Lence, Sergio H. & Hayes, Dermot J., 2001. "Response To An Asymmetric Demand For Attributes: An Application To The Market For Genetically Modified Crops," 2001 Conference, April 23-24, 2001, St. Louis, Missouri 18956, NCR-134 Conference on Applied Commodity Price Analysis, Forecasting, and Market Risk Management.
    2. Harvey E. Lapan & Giancarlo Moschini, 2004. "Innovation and Trade with Endogenous Market Failure: The Case of Genetically Modified Products," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(3), pages 634-648.
    3. Demont, Matty & Tollens, Eric, 1999. "The Economics Of Agricultural Biotechnology: Historical And Analytical Framework," Working Papers 31845, Katholieke Universiteit Leuven, Centre for Agricultural and Food Economics.
    4. van Tongeren, Frank W. & van Meijl, Hans, 2003. "International Diffusion Of Gains From Biotechnology And The European Union'S Common Agricultural Policy," 2003 Annual Meeting, August 16-22, 2003, Durban, South Africa 25835, International Association of Agricultural Economists.
    5. S. Baranzoni & P. Bianchi & L. Lambertini, 2000. "Market Structure," Working Papers 368, Dipartimento Scienze Economiche, Universita' di Bologna.
    6. David Godden, 2000. "GMOs and IP: embodied technological change," Journal of International Development, John Wiley & Sons, Ltd., vol. 12(8), pages 1179-1182.
    7. Ian M. Sheldon, 2002. "Regulation of biotechnology: will we ever 'freely' trade GMOs?," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 29(1), pages 155-176, March.
    8. Nicholas G. Kalaitzandonakes, 2000. "Agrobiotechnology and Competitiveness," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(5), pages 1224-1233.
    9. Lence, Sergio H. & Hayes, Dermot J., 2002. "Impact of Biotech Grains on Market Structure and Societal Welfare," Staff General Research Papers 11919, Iowa State University, Department of Economics.
    10. Giannakas, Konstantinos & Fulton, Murray, 2002. "Consumption effects of genetic modification: what if consumers are right?," Agricultural Economics, Blackwell, vol. 27(2), pages 97-109, August.
    11. Giannakas, Konstantinos & Fulton, Murray, 2002. "Consumption effects of genetic modification: what if consumers are right?," Agricultural Economics of Agricultural Economists, International Association of Agricultural Economists, vol. 27(2), August.
    12. Akerlof, George A, 1970. "The Market for 'Lemons': Quality Uncertainty and the Market Mechanism," The Quarterly Journal of Economics, MIT Press, vol. 84(3), pages 488-500, August.
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