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Who Benefits from Quality Labelling? Segregation Costs, International Trade and Producer Outcomes

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  • Jackson, Lee Ann

Abstract

This paper analyses the impact of quality based labelling on product prices, factor allocation and the resulting effects on producers within the context of an international trading system. A general equilibrium model, calibrated to 1998 data, describes United States and European Union labelling regimes for genetically modified agricultural products. The results indicate that the labelling choice of trade partners have large distributive impacts within national economies, as well as across countries and highlight the importance of using general equilibrium framework to understand the system wide impacts of labelling policies that differentiate products based upon quality characteristics. These results are essential for policy makers seeking to understand the global and domestic economic implications of environmental labelling systems.

Suggested Citation

  • Jackson, Lee Ann, 2003. "Who Benefits from Quality Labelling? Segregation Costs, International Trade and Producer Outcomes," 2003 Conference (47th), February 12-14, 2003, Fremantle, Australia 57897, Australian Agricultural and Resource Economics Society.
    • Handle: RePEc:ags:aare03:57897
    DOI: 10.22004/ag.econ.57897
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    References listed on IDEAS

    as
    1. Lee Ann Jackson, 2002. "Is Regulatory Harmonization Efficient? The Case of Agricultural Biotechnology Labelling," Centre for International Economic Studies Working Papers 2002-06, University of Adelaide, Centre for International Economic Studies.
    2. Bruce A. Babcock & Michael D. Duffy & Robert Wisner, 1999. "Availability and Market Penetration of GMO Corn and Soybeans," Food and Agricultural Policy Research Institute (FAPRI) Publications (archive only) 99-bp26, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    3. Sedjo, Roger & Swallow, Stephen, 1999. "Eco-Labeling and the Price Premium," RFF Working Paper Series dp-00-04, Resources for the Future.
    4. Kelvin J. Lancaster, 1966. "A New Approach to Consumer Theory," Journal of Political Economy, University of Chicago Press, vol. 74(2), pages 132-132.
    5. Stephen K. Swallow & Roger A. Sedjo, 2000. "Eco-Labeling Consequences in General Equilibrium: A Graphical Assessment," Land Economics, University of Wisconsin Press, vol. 76(1), pages 28-36.
    6. Golan, Elise H. & Kuchler, Fred & Mitchell, Lorraine, 2000. "Economics Of Food Labeling," Agricultural Economic Reports 34069, United States Department of Agriculture, Economic Research Service.
    7. Jeffrey R. Blend & Eileen O. van Ravenswaay, 1999. "Measuring Consumer Demand for Ecolabeled Apples," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 81(5), pages 1072-1077.
    8. Wesley Nimon & John Beghin, 2017. "Ecolabels And International Trade In The Textile And Apparel Market," World Scientific Book Chapters, in: John Christopher Beghin (ed.), Nontariff Measures and International Trade, chapter 18, pages 321-326, World Scientific Publishing Co. Pte. Ltd..
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