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

Eggert, H and Greaker, M (2011) In Environmental and Resource Economics 48(4). p.587-608
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 partly replaced by a mandatory labeling scheme. Although there is no measure in the General Agreement on Tariffs and Trade that directly addresses the use of product labeling, WTO and others have been skeptical to mandatory product labeling on the grounds that they may be used as hidden protectionism hampering global welfare. This study has two foci. First, we examine how different policies for the production and use of GMOs might influence the market outcome in consumer food markets. Second, we evaluate the welfare effects of the... (More)
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 partly replaced by a mandatory labeling scheme. Although there is no measure in the General Agreement on Tariffs and Trade that directly addresses the use of product labeling, WTO and others have been skeptical to mandatory product labeling on the grounds that they may be used as hidden protectionism hampering global welfare. This study has two foci. First, we examine how different policies for the production and use of GMOs might influence the market outcome in consumer food markets. Second, we evaluate the welfare effects of the policy measures. We find that mandatory labeling often increases domestic welfare and, may also enhance global welfare. On the other hand, a trade ban is more likely to decrease global welfare. (Less)
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author
publishing date
type
Contribution to journal
publication status
published
subject
keywords
GMOs, Product-labeling, Product differentiation, Quality competition, Trade policy, Welfare
in
Environmental and Resource Economics
volume
48
issue
4
pages
587 - 608
publisher
Springer
external identifiers
  • scopus:79952621230
ISSN
0924-6460
DOI
10.1007/s10640-010-9405-2
project
BECC
language
English
LU publication?
no
id
ee5c7288-5eb6-4fc4-a054-ec48631bed21 (old id 4448663)
date added to LUP
2014-05-23 12:11:24
date last changed
2017-01-01 06:02:47
@article{ee5c7288-5eb6-4fc4-a054-ec48631bed21,
  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 partly replaced by a mandatory labeling scheme. Although there is no measure in the General Agreement on Tariffs and Trade that directly addresses the use of product labeling, WTO and others have been skeptical to mandatory product labeling on the grounds that they may be used as hidden protectionism hampering global welfare. This study has two foci. First, we examine how different policies for the production and use of GMOs might influence the market outcome in consumer food markets. Second, we evaluate the welfare effects of the policy measures. We find that mandatory labeling often increases domestic welfare and, may also enhance global welfare. On the other hand, a trade ban is more likely to decrease global welfare.},
  author       = {Eggert, H and Greaker, M},
  issn         = {0924-6460},
  keyword      = {GMOs,Product-labeling,Product differentiation,Quality competition,Trade policy,Welfare},
  language     = {eng},
  number       = {4},
  pages        = {587--608},
  publisher    = {Springer},
  series       = {Environmental and Resource Economics},
  title        = {Trade, GMOs and Environmental Risk: Are Current Policies Likely to Improve Welfare?},
  url          = {http://dx.doi.org/10.1007/s10640-010-9405-2},
  volume       = {48},
  year         = {2011},
}