eeu sweden | Policy design

Trade, GMOs, and Environmental Risk: Are Policies Likely to Improve Welfare?

Controversy over the EU import ban on food from genetically modified organisms (GMOs) forced the EU to change course and institute a mandatory labeling scheme. This study first examined how different policies for the production and use of GMOs might influence the market outcome in consumer food markets. Second, it evaluated the welfare effects of the policy measures, finding that mandatory labeling often increases both domestic welfare and global welfare, while trade bans more likely decrease global welfare.

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  • eeu sweden

Type of publication

  • EfD Discussion paper

Reference

Håkan Eggert, and Mads Greaker, ”Trade, GMOs, and Environmental Risk: Are Policies Likely to Improve Welfare?”, EfD Discussion Paper 08-19, a joint publication of the Environment for Development Initiative and Resources for the Future (www.rff.org), Washington DC. August 2008.

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