MARKET AND WELFARE EFFECTS OF MANDATORY COUNTRY-OF-ORIGIN LABELING IN THE US SPECIALTY CROPS SECTOR

This study provides a new framework of analysis of the market and welfare effects of mandatory country of origin labeling (MCOOL) for fruits and vegetables that accounts for heterogeneous consumer preferences for domestic products, differences in producer agronomic characteristics, and retailer market power when buying and selling these products. The market and welfare effects of MCOOL are shown to be case-specific and dependent on the labeling costs at the farm and retail levels, the strength of consumer preference for domestic products, the market power of retailers, the marketing margin along the supply chain, and the relative costs of imported and domestic products. Simulation results for the US markets of apples and tomatoes indicate that for the regulation to increase total economic welfare in these markets, the consumer demand after MCOOL would need to increase by 2.6% to 7.0% for domestic apples and by 8.2% to 22.4% for domestic tomatoes, depending on the market power of retailers and the size of the labeling costs.International Relations/Trade,

Market and Welfare Effects of GMO Introduction in Small Exporting Countries

This paper analyzes the market and welfare effects of the introduction of GM products in small open developing economies that, prior to the adoption of GM crops, were net exporters of non-GM products. It explicitly accounts for differences in consumer attitudes towards GM products and producer agronomic characteristics as well as for the structure and conduct of the GM seed suppliers. Different scenarios concerning different labeling regimes in the small exporting country and the world market of the products are considered. A positive welfare effect of the introduction of GM products to small open economies should not be taken for granted. While yield increases and cost reductions associated with the GM technology are certainly important, their presence does not guarantee a positive effect on the welfare of all groups involved and/or on aggregate domestic welfare. The market and welfare effects of the introduction of GM crops in small exporting economies were shown to be case-specific and dependent on the labeling regimes in the world market, the labeling regime in the domestic market, the segregation costs and the marketing margins under the different labeling scenarios, the domestic consumer attitudes towards GM products, the premium enjoyed by the non-GM crops, the relative cost effectiveness of GM crops under the local production conditions, and the market power of the GM seed suppliers.Research and Development/Tech Change/Emerging Technologies, L150, Q130, Q170,

The Effects of Public R&D on U.S. Agriculture: A State-Level Analysis

Research and Development/Tech Change/Emerging Technologies,

Market and Welfare Effects of Mandatory Country-of-Origin Labeling in the US Specialty Crops Sector

This study provides a new framework of analysis of the market and welfare effects of mandatory country of origin labeling (MCOOL) for fruits and vegetables that accounts for heterogeneous consumer preferences for domestic products, differences in producer agronomic characteristics, and retailer market power when buying and selling these products. The market and welfare effects of MCOOL are shown to be case-specific and dependent on the labeling costs at the farm and retail levels, the strength of consumer preference for domestic products, the market power of retailers, the marketing margin along the supply chain, and the relative costs of imported and domestic products. Simulation results for the US markets of apples and tomatoes indicate that for the regulation to increase total economic welfare in these markets, the consumer demand after MCOOL would need to increase by 2.6% to 7.0% for domestic apples and by 8.2% to 22.4% for domestic tomatoes, depending on the market power of retailers and the size of the labeling costs.Crop Production/Industries, International Relations/Trade,

Market and Welfare Effects of GMO Introduction in Small Open Economies

This paper develops a model of heterogeneous producers and consumers to analyze the market and welfare effects of the introduction of GM products in small open developing economies. Analytical results show that while the agronomic benefits associated with the introduction of the first-generation, producer-oriented GM products are certainly important, their presence does not guarantee welfare gains to small developing countries. The introduction of GM products is shown to create winners and losers among the consumers and producers of the small open economies.Includes bibliographical reference

Essays on innovations in the agriculture and food industry sectors

This dissertation studies different aspects of technological and regulatory innovations in the agriculture and food industry sectors. The market and welfare effects of the introduction of genetically modified (GM) products into the food system of small open economies under alternative labeling regimes are analyzed in Chapter 1. Analytical results show that these effects are case-specific and dependent on the labeling regime(s) in the world and the domestic markets, the attitudes of domestic consumers towards GM products, the segregation costs and the marketing margins under the different labeling scenarios, the price premium enjoyed by the non-GM crops in the world market, the relative cost effectiveness of GM crops under local production conditions, and the market power of GM seed suppliers. Chapter 2 provides a quantitative assessment of the benefits from public agricultural research and development (R&D) for each continental state of the U.S. for 1949-1991, explicitly acknowledging for spillover effects. The novelty of this study resides in the use of spatial econometric techniques to account for stochastic spatial dependency generated by knowledge spillovers. The estimated national average own state internal rate of return (IRR) to investments in public agricultural R&D is 15.69%; while the estimated national average social IRR is 27%. Failing to account for the indirect effects of knowledge spillovers results in estimates that are, on average, 11% and 13% higher. Chapter 3 analyzes the potential market and welfare effects of mandatory country of origin labeling (MCOOL) for fruits and vegetables in the U.S. These are shown to be case-specific and dependent on the labeling costs at the farm and retail levels, the strength of consumer preference for domestic products, the market power of retailers, the marketing margin along the supply chain, and the relative costs of imported and domestic products. Simulation results indicate that the demand for domestic apples (tomatoes) would need to increase by 2.6% to 7.0% (8.2% to 22.4%) for the MCOOL regulation to increase total economic welfare, depending on retailer market power and labeling costs

Cotton Production Prospects in Selected Foreign Countries (PowerPoint)

Crop Production/Industries,

MARKET AND WELFARE EFFECTS OF MANDATORY COUNTRY-OF-ORIGIN LABELING IN THE US SPECIALTY CROPS SECTOR

This study provides a new framework of analysis of the market and welfare effects of mandatory country of origin labeling (MCOOL) for fruits and vegetables that accounts for heterogeneous consumer preferences for domestic products, differences in producer agronomic characteristics, and retailer market power when buying and selling these products. The market and welfare effects of MCOOL are shown to be case-specific and dependent on the labeling costs at the farm and retail levels, the strength of consumer preference for domestic products, the market power of retailers, the marketing margin along the supply chain, and the relative costs of imported and domestic products. Simulation results for the US markets of apples and tomatoes indicate that for the regulation to increase total economic welfare in these markets, the consumer demand after MCOOL would need to increase by 2.6% to 7.0% for domestic apples and by 8.2% to 22.4% for domestic tomatoes, depending on the market power of retailers and the size of the labeling costs

Market and Welfare Effects of GMO Introduction in Small Exporting Countries

This paper analyzes the market and welfare effects of the introduction of GM products in small open developing economies that, prior to the adoption of GM crops, were net exporters of non-GM products. It explicitly accounts for differences in consumer attitudes towards GM products and producer agronomic characteristics as well as for the structure and conduct of the GM seed suppliers. Different scenarios concerning different labeling regimes in the small exporting country and the world market of the products are considered. A positive welfare effect of the introduction of GM products to small open economies should not be taken for granted. While yield increases and cost reductions associated with the GM technology are certainly important, their presence does not guarantee a positive effect on the welfare of all groups involved and/or on aggregate domestic welfare. The market and welfare effects of the introduction of GM crops in small exporting economies were shown to be case-specific and dependent on the labeling regimes in the world market, the labeling regime in the domestic market, the segregation costs and the marketing margins under the different labeling scenarios, the domestic consumer attitudes towards GM products, the premium enjoyed by the non-GM crops, the relative cost effectiveness of GM crops under the local production conditions, and the market power of the GM seed suppliers