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Trade, GMOs, and Environmental Risk: Are Policies Likely to Improve Welfare?

Author

Listed:
  • Eggert, Hakan
  • Greaker, Mads

Abstract

Food with inputs from genetically modified organisms (GMOs) has met considerable skepticism among European Union (EU) consumers. The EU import ban on GM food has triggered a great deal of controversy and has been replaced by a mandatory labeling scheme. This study had two foci. First, we examined how different policies for the production and use of GMOs might influence the market outcome in consumer food markets. Second, we evaluated the welfare effects of the policy measures. We found that mandatory labeling often increases domestic welfare and, moreover, that in most cases it increases global welfare. On the other hand, a trade ban is more likely to decrease global welfare.

Suggested Citation

  • Eggert, Hakan & Greaker, Mads, 2008. "Trade, GMOs, and Environmental Risk: Are Policies Likely to Improve Welfare?," RFF Working Paper Series dp-08-19-efd, Resources for the Future.
  • Handle: RePEc:rff:dpaper:dp-08-19-efd
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    File URL: http://www.rff.org/RFF/documents/EfD-08-19.pdf
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    More about this item

    Keywords

    Product-labeling; GMOs; protectionism; trade policy;
    All these keywords.

    JEL classification:

    • H2 - Public Economics - - Taxation, Subsidies, and Revenue
    • H7 - Public Economics - - State and Local Government; Intergovernmental Relations
    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy

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