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GMO Standards, Endogenous Policy and the Market for Information

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  • Mauro Vigani
  • Alesandro Olper

Abstract

The paper develops a composite index of GMO standards restrictiveness for 60 countries, assigning objective scores to six different regulatory dimensions. Using this index and its components, we empirically investigate the political and economic determinants of GMO regulations. Results show that many of the determinants highlighted in the theoretical literature, such as the country trade position, the potential gains from GMO adoption, and the consumer risk aversion, are important determinants of the restrictiveness in GMO regulations. As a key result there emerges a prominent role for the market of information, showing that the structure of domestic mass media (public vs. private) is an important driver of GMO standards.

Suggested Citation

  • Mauro Vigani & Alesandro Olper, 2012. "GMO Standards, Endogenous Policy and the Market for Information," LICOS Discussion Papers 30612, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
  • Handle: RePEc:lic:licosd:30612
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    File URL: http://www.econ.kuleuven.be/licos/publications/dp/dp306.pdf
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Alessandro Olper & Johan Swinnen, 2013. "Mass Media and Public Policy: Global Evidence from Agricultural Policies," World Bank Economic Review, World Bank Group, vol. 27(3), pages 413-436.
    2. de Faria, Rosane Nunes & Wieck, Christine, 2014. "Measuring The Extent Of Gmo Asynchronous Approval Using Regulatory Dissimilarity Indices: The Case Of Maize And Soybean," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182796, European Association of Agricultural Economists.
    3. repec:bla:jageco:v:68:y:2017:i:1:p:182-198 is not listed on IDEAS
    4. Herath, Deepananda, 2013. "Evolving Consumer Acceptance of Biotechnology Applications in Canada: Evidence from the Public Opinion Surveys in 2001 (fifth wave) and 2011 (seventh wave)," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150525, Agricultural and Applied Economics Association.
    5. White, Robin R. & Brady, Michael, 2014. "Can consumers’ willingness to pay incentivize adoption of environmental impact reducing technologies in meat animal production?," Food Policy, Elsevier, vol. 49(P1), pages 41-49.
    6. Richard Danvers Smart & Matthias Blum & Justus Wesseler, 2016. "Trends in Genetically Engineered Crops' Approval Times in the United States and the European Union," Economics Working Papers 16-03, Queen's Management School, Queen's University Belfast.
    7. de Faria, Rosane Nunes & Wieck, Christine, 2015. "Empirical evidence on the trade impact of asynchronous regulatory approval of new GMO events," Food Policy, Elsevier, vol. 53(C), pages 22-32.
    8. Van Acker, Rene & Cici, S. Zahra H. & Lohuis, Michael & Ryan, Camille & Sachs, Eric, 2015. "Gaining Societal Acceptance of Biotechnology: The Case for Societal Engagement," GMCC-15: Seventh GMCC, November 17-20, 2015, Amsterdam, the Netherlands 211639, International Conference on Coexistence between Genetically Modified (GM) and non-GM based Agricultural Supply Chains (GMCC).
    9. Pierre Fauvet & Sébastien Rouillon, 2016. "Would you trust lobbies?," Public Choice, Springer, vol. 167(3), pages 201-219, June.
    10. repec:zbw:espost:170726 is not listed on IDEAS
    11. McCluskey, Jill J. & Swinnen, Johan & Vandemoortele, Thijs, 2015. "You get what you want: A note on the economics of bad news," Information Economics and Policy, Elsevier, vol. 30(C), pages 1-5.

    More about this item

    Keywords

    GMO standards; political economics; media market;

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
    • Q16 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - R&D; Agricultural Technology; Biofuels; Agricultural Extension Services
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy

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