Contribution to the economic impact assessment of policy options to regulate animal cloning for food production with an economic simulation model

Koen Dillen, Emanuele Ferrari, Pascal Tillie, George Philippidis and Helaine Sophie
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Helaine Sophie: European Commission JRC, https://joint-research-centre.ec.europa.eu/index_en

No JRC79995, JRC Research Reports from Joint Research Centre

Abstract: The EU is currently evaluating different policy options towards the use of cloning or products derived from cloned animals in the food chain. This study presents a first attempt to quantify the likely effects of different policy scenarios on international trade and EU domestic production. In the context of the Impact Asessment process the JRC was requested to simulate via a modelling study the economic impact of selected policy options. Based on a literature review and the specific constraints for this study, the choice was made to perform the analysis through the use of a computable general equilibrium model and focus on the dairy and beef sector. The different model scenarios are constructed based on combinations of the discussed policy options such as a ban or traceability and labelling requirements with the productivity increase associated with cloning. The results show that only the situation where trade with countries using the technique of cloning is suspended has an effect on competitiveness. This suspension could be due to express prohibitions or a de facto decision by exporters when traceability and labelling costs increase. Under this scenario imports drop significantly which is followed by a slight increase in domestic production and prices, especially for beef and cattle.

Keywords: Cloning; CGE; European policy; international trade; competitiveness (search for similar items in EconPapers)
JEL-codes: F11 F13 Q16 Q17 Q18 (search for similar items in EconPapers)
Pages: 43 pages
Date: 2013-12
New Economics Papers: this item is included in nep-agr, nep-cmp, nep-eur and nep-int
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Persistent link: https://EconPapers.repec.org/RePEc:ipt:iptwpa:jrc79995

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