Hormone Beefs, Chloridric Chicken and International Trade: Can Scientific Uncertainty Be an Informational Barrier to Trade?

35 Pages Posted: 3 Aug 2000

See all articles by Giacomo Calzolari

Giacomo Calzolari

European University Institute - Economics Department (ECO); Centre for Economic Policy Research (CEPR); University of Bologna

Giovanni Immordino

CSEF - University of Naples Federico II

Date Written: January 2000

Abstract

We study international trade of innovative goods subject to scientific uncertainty on consumers' health effects. Trade of these goods is often at the centre of international disputes. We show that a new trade protectionism may arise because of the scientific uncertainty. A free riding effect is individuated implying a more conservative behaviour by countries. We also study the informative role played by producers (lobbies) in revealing valuable information. We find that producers reveal more information when the effects of harmful consumption on health are long lasting. Our results are robust to several extensions (e.g. product labelling, firm liability).

Keywords: International Trade, Lobbies, Information, Scientific Uncertainty

JEL Classification: D8, F1, L1

Suggested Citation

Calzolari, Giacomo and Immordino, Giovanni, Hormone Beefs, Chloridric Chicken and International Trade: Can Scientific Uncertainty Be an Informational Barrier to Trade? (January 2000). Available at SSRN: https://ssrn.com/abstract=229156 or http://dx.doi.org/10.2139/ssrn.229156

Giacomo Calzolari (Contact Author)

European University Institute - Economics Department (ECO) ( email )

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Centre for Economic Policy Research (CEPR) ( email )

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University of Bologna ( email )

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HOME PAGE: http://sites.google.com/view/giacomo-calzolari

Giovanni Immordino

CSEF - University of Naples Federico II ( email )

Italy

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