Global Market Effects of Alternative European Responses to Gmos

CIES Working Paper No. 0032

24 Pages Posted: 19 Sep 2000

See all articles by Chantal Nielsen

Chantal Nielsen

Danish Research Institute of Food Economics (FOI) - Agricultural Policy Division

Kym Anderson

University of Adelaide - Centre for International Economic Studies (CIES); Centre for Economic Policy Research (CEPR); Australian National University

Date Written: July 2000

Abstract

Current debates about genetically modified organisms (GMOs) in agriculture reveal substantial differences in perception of the associated risks and benefits. Genetically modified crop varieties allegedly provide farmers with various agronomic benefits, but serious environmental, health and ethical concerns also are being raised. A majority of people in numerous countries want at least to have labels on products that may contain GMOs, while the most extreme opponents (particularly in Western Europe) want to see GM products totally excluded from production and consumption in their country. This paper first discusses the ways in which the emergence of GMOs is generating policy reactions, which could lead to trade disputes between Western Europe and the United States. It then uses an empirical model of the global economy to quantify the effects on production, prices, trade patterns and national economic welfare of certain (non-European) countries adopting GM crops. Those results are compared with what they would be if Western Europe banned imports of those products from countries adopting GM technology. An alternative market-based approach also is considered, whereby a shift in consumer preferences in Europe is investigated.

Keywords: GMOs, Trade Policy, Import Ban, Consumer Preferences, Labelling

JEL Classification: C68, D58, F13, O3, Q17, Q18

Suggested Citation

Pohl Nielsen, Chantal Maria and Anderson, Kym, Global Market Effects of Alternative European Responses to Gmos (July 2000). CIES Working Paper No. 0032, Available at SSRN: https://ssrn.com/abstract=239451 or http://dx.doi.org/10.2139/ssrn.239451

Chantal Maria Pohl Nielsen (Contact Author)

Danish Research Institute of Food Economics (FOI) - Agricultural Policy Division ( email )

Rolighedsvej 25
1958 Frederiksberg C
Denmark
+45 3 528 6864 (Phone)
+45 3 528 6800 (Fax)

Kym Anderson

University of Adelaide - Centre for International Economic Studies (CIES) ( email )

School of Economics
Adelaide SA 5005
Australia
+61 8 8313 4712 (Phone)
+61 8 8223 1460 (Fax)

Centre for Economic Policy Research (CEPR)

London
United Kingdom

Australian National University ( email )

Arndt-Corden Dept of Economics
Coombs Building
Canberra, AK ACT 2600
Australia
+61 8 8313 4712 (Phone)

HOME PAGE: http://publicpolicy.anu.edu.au/crawford_people/content/staff/acde/kanderson.php

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