THE MARKET AND WELFARE EFFECTS OF THE NEW NATIONAL ORGANIC PROGRAM

Amalia Yiannaka
Additional contact information
Amalia Yiannaka: Department of Agricultural Economics, University of Nebraska-Lincoln, 314D H.C. Filley Hall, Lincoln, NE, 68583-0922, USA

Chapter 2 in Marketing Trends for Organic Food in the 21st Century, 2004, pp 21-35 from World Scientific Publishing Co. Pte. Ltd.

Abstract: AbstractThe chapter examines the scope and significance of the National Organic Program (NOP) recently introduced in the United States and systematically analyzes the effects of the new national organic standards on the markets for organic, conventional and genetically modified food products (GMPs). The effect of the NOP on consumer purchasing decisions and welfare is examined under the current no labeling of GMPs regime. A model of vertical product differentiation is developed to capture heterogeneous consumer preferences regarding interventions in the production process. Analytical results show that, as long as the NOP does not impose significant costs in the organic food supply chain, the introduction of the new organic standards can increase the market share of the organic sector and can enhance aggregate consumer welfare. Overall, the market and welfare effects of the NOP depend on the distribution of consumer preferences and the level of aversion to interventions in the production process, the production share of GMPs, the effect of the NOP on the price of the organic product and the relative costs of producing organic, conventional and GM products.

Keywords: Market Research; Marketing Strategies; Marketing Mix; Purchasing Behavior; Strategic Marketing (search for similar items in EconPapers)
JEL-codes: M11 (search for similar items in EconPapers)
Date: 2004
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.worldscientific.com/doi/pdf/10.1142/9789812796622_0002 (application/pdf)
https://www.worldscientific.com/doi/abs/10.1142/9789812796622_0002 (text/html)
Ebook Access is available upon purchase.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wsi:wschap:9789812796622_0002

Ordering information: This item can be ordered from

Access Statistics for this chapter

More chapters in World Scientific Book Chapters from World Scientific Publishing Co. Pte. Ltd.
Bibliographic data for series maintained by Tai Tone Lim ().