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Trade, GMOs, and Environmental Risk: Are Policies Likely to Improve Welfare?
Håkan Eggert, Mads Greaker
RFF Discussion Paper EfD 08-19 | August 2008
RESEARCH TOPICS:
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 The EU import ban on GM food has triggered a great deal of controversy and has been replaced by a mandatory labeling scheme.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 hadtwo 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 effectsof 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 morelikely to decrease global welfare.
RELATED SUBTOPICS
Food Safety
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