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

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  • Diez, Maria Del Carmen Fernandez

Abstract

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.

Suggested Citation

  • Diez, Maria Del Carmen Fernandez, 2005. "Welfare Measures and Mandatory Regulation for Transgenic Food in the European Union: A Theoretical Framework for the Analysis," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24472, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaae05:24472
    DOI: 10.22004/ag.econ.24472
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    References listed on IDEAS

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    2. Sergio H. Lence & Dermot J. Hayes, 2001. "Response to an Asymmetric Demand for Attributes: An Application to the Market for Genetically Modified Crops," Midwest Agribusiness Trade Research and Information Center (MATRIC) Publications (archive only) 01-mwp5, Center for Agricultural and Rural Development (CARD) at Iowa State University.
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    9. Lence, Sergio H. & Hayes, Dermot J., 2002. "Impact of Biotech Grains on Market Structure and Societal Welfare," Staff General Research Papers Archive 11919, Iowa State University, Department of Economics.
    10. Ian M. Sheldon, 2002. "Regulation of biotechnology: will we ever 'freely' trade GMOs?," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 29(1), pages 155-176, March.
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    Cited by:

    1. José Manuel Martins Caetano, 2008. "EU regulation concerning genetically modified products: an issue of food security or a measure of disguised protectionism?," CEFAGE-UE Working Papers 2008_10, University of Evora, CEFAGE-UE (Portugal).

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