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  • WELFARE EFFECTS OF U.S. LIBERTY LINK RICE CONTAMINATION

  • JADA THOMPSON, ERIC WAILES, ALVARO DURAND-MORAT, AMANDA LEISTER
  • Journal:
    Journal of Agricultural and Applied Economics / Volume 47 / Issue 2 / May 2015
    Published online by Cambridge University Press:
    20 April 2015, pp. 243-259
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  • United States consumer confidence in food safety is an increasingly more prominent issue in food production and marketing. Estimating the welfare effects of a breakdown in the supply chain can provide a benchmark for the cost of potential future events. In 2006, United States long grain rice stocks were contaminated with an unapproved genetically modified rice variety causing trade disruptions predominantly between the United States and the European Union. Using a spatial partial equilibrium model the economic effects of European policy on bilateral trade flows and prices during this event was an estimated loss of $421.3 million US dollars.