Trade, Standards, and the Political Economy of Genetically Modified Food

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dc.creatorJackson, Lee Ann
dc.creatorAnderson, Kym
dc.creatorDamania, Richard
dc.date2013-06-24T15:49:31Z
dc.date2013-06-24T15:49:31Z
dc.date2004-09-01
dc.date.accessioned2026-07-01T01:24:28Z
dc.descriptionA common-agency lobbying model is developed to help understand why North America and the European Union have adopted such different policies toward genetically modified (GM) food. Results show that when firms (in this case farmers) lobby policy makers to influence standards and consumers and environmentalists care about the choice of standard, it is possible that increased competition from abroad can lead to strategic incentives to raise standards, not just lower them as shown in earlier models. We show that differences in comparative advantage in the adoption of GM crops may be sufficient to explain the trans-Atlantic difference in GM policies. On the one hand, farmers in a country with a comparative advantage in GM technology can gain a strategic cost advantage by lobbying for lax controls on GM production and usage at home and abroad. On the other hand, when faced with greater competition, the optimal response of farmers in countries with a comparative disadvantage in GM adoption may be to lobby for more-stringent GM standards. Thus it is rational for producers in the EU (whose relatively small farms would enjoy less gains from the new biotechnology than broad-acre American farms) to reject GM technologies if that enables them and/or consumer and environmental lobbyists to argue for restraints on imports from GM-adopting countries. This theoretical proposition is supported by numerical results from a global general equilibrium model of GM adoption in America without and with an EU moratorium.
dc.formatapplication/pdf
dc.formattext/plain
dc.identifierhttp://documents.worldbank.org/curated/en/2004/09/5126874/trade-standards-political-economy-genetically-modified-food
dc.identifierhttps://hdl.handle.net/10986/14144
dc.identifierhttps://doi.org/10.1596/1813-9450-3395
dc.identifier.urihttp://hdl.handle.net/123456789/417809
dc.languageEnglish
dc.languageen_US
dc.publisherWorld Bank, Washington, D.C.
dc.relationPolicy Research Working Paper;No.3395
dc.rightsCC BY 3.0 IGO
dc.rightshttp://creativecommons.org/licenses/by/3.0/igo/
dc.rightsWorld Bank
dc.subjectADVERSE IMPACTS
dc.subjectAGRICULTURAL ECONOMICS
dc.subjectAGRICULTURE
dc.subjectBIOTECHNOLOGY
dc.subjectCLIMATIC CONDITIONS
dc.subjectCOMPARATIVE ADVANTAGE
dc.subjectCONSUMER PREFERENCES
dc.subjectCONSUMERS
dc.subjectCOST FUNCTIONS
dc.subjectCOST SAVINGS
dc.subjectCROP PRODUCTION
dc.subjectCROPS
dc.subjectDEVELOPING COUNTRIES
dc.subjectECONOMIC DEVELOPMENT
dc.subjectECONOMIC GROWTH
dc.subjectECONOMIC MODELS
dc.subjectECONOMIC RESEARCH
dc.subjectECONOMIC WELFARE
dc.subjectECONOMISTS
dc.subjectENVIRONMENTAL COSTS
dc.subjectENVIRONMENTAL EFFECTS
dc.subjectENVIRONMENTAL IMPACT
dc.subjectENVIRONMENTAL IMPACTS
dc.subjectENVIRONMENTAL POLICY
dc.subjectEQUILIBRIUM
dc.subjectEQUIVALENT VARIATION
dc.subjectEXPORTS
dc.subjectEXTERNALITIES
dc.subjectFARMERS
dc.subjectFARMS
dc.subjectFOOD POLICY RESEARCH
dc.subjectFOOD PRODUCTION
dc.subjectFUTURE RESEARCH
dc.subjectGENERAL EQUILIBRIUM
dc.subjectGENERAL EQUILIBRIUM MODEL
dc.subjectHOUSEHOLDS
dc.subjectHUNGER
dc.subjectIMPORTS
dc.subjectINCOMES
dc.subjectINDUSTRIAL ECONOMICS
dc.subjectINNOVATIONS
dc.subjectINTERNATIONAL TRADE
dc.subjectINVESTMENT INCENTIVES
dc.subjectLAND USE
dc.subjectLOBBYISTS
dc.subjectMARGINAL BENEFITS
dc.subjectMARGINAL COST
dc.subjectMONOPOLISTIC COMPETITION
dc.subjectNATURAL ENVIRONMENT
dc.subjectPOLICY DECISIONS
dc.subjectPOLICY MAKERS
dc.subjectPOLITICAL ECONOMY
dc.subjectPOLLUTION
dc.subjectPRICE DECLINES
dc.subjectPRODUCERS
dc.subjectPRODUCT DIFFERENTIATION
dc.subjectPRODUCTION COSTS
dc.subjectPRODUCTION FUNCTION
dc.subjectPRODUCTIVITY
dc.subjectPUBLIC GOODS
dc.subjectQUALITY STANDARDS
dc.subjectREGULATORY REGIMES
dc.subjectRENT SEEKING
dc.subjectRESOURCE ALLOCATION
dc.subjectSAFETY
dc.subjectSTATIC ANALYSIS
dc.subjectTERMS OF TRADE
dc.subjectTOTAL FACTOR PRODUCTIVITY
dc.subjectTRADE BARRIERS
dc.subjectVOTERS
dc.subjectWEALTH
dc.subjectWELFARE EFFECTS
dc.subjectWILLINGNESS TO PAY
dc.subjectWORLD TRADE ORGANIZATION
dc.subjectWTO
dc.titleTrade, Standards, and the Political Economy of Genetically Modified Food

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