Nothing Special   »   [go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/p/ete/licosp/509755.html
   My bibliography  Save this paper

The political economy of geographical indications

Author

Listed:
  • Koen Deconinck
  • Martijn Huysmans
  • Jo Swinnen
Abstract
In this article we study the political process that governs the creation and size of new Geographical Indications (GIs). Producers can choose to apply for a GI and subsequently go through a bargaining process with the government. We derive the optimal GI area from the point of view of consumers, producers, social welfare, and the government; and we show how bargaining leads to a GI size in between the applicant’s optimum and the government’s optimum. Under the assumption that the non-GI good is a commodity, any GI implemented through the political process is welfare-enhancing, but not all welfare-enhancing GIs will be proposed by producers.

Suggested Citation

  • Koen Deconinck & Martijn Huysmans & Jo Swinnen, 2015. "The political economy of geographical indications," Working Papers of LICOS - Centre for Institutions and Economic Performance 509755, KU Leuven, Faculty of Economics and Business (FEB), LICOS - Centre for Institutions and Economic Performance.
    • Handle: RePEc:ete:licosp:509755
    as

    Download full text from publisher

    File URL: https://lirias.kuleuven.be/retrieve/338038
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Stephan Marette & Roxanne Clemens & Bruce Babcock, 2008. "Recent international and regulatory decisions about geographical indications," Agribusiness, John Wiley & Sons, Ltd., vol. 24(4), pages 453-472.
    2. Michael Spence, 1976. "Product Selection, Fixed Costs, and Monopolistic Competition," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 43(2), pages 217-235.
    3. Orley Ashenfelter & Karl Storchmann, 2010. "Using Hedonic Models of Solar Radiation and Weather to Assess the Economic Effect of Climate Change: The Case of Mosel Valley Vineyards," The Review of Economics and Statistics, MIT Press, vol. 92(2), pages 333-349, May.
    4. Langinier Corinne & Babcock Bruce A., 2008. "Agricultural Production Clubs: Viability and Welfare Implications," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 6(1), pages 1-31, December.
    5. Gergaud, Olivier & Ginsburgh, Victor, 2010. "Natural Endowments, Production Technologies and the Quality of Wines in Bordeaux. Does Terroir Matter?," Journal of Wine Economics, Cambridge University Press, vol. 5(1), pages 3-21, April.
    6. Johan F.M. Swinnen & Thijs Vandemoortele, 2008. "The Political Economy of Nutrition and Health Standards in Food Markets ," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 30(3), pages 460-468.
    7. repec:lic:licosd:29611 is not listed on IDEAS
    8. Daniel Pick, 2008. "Geographical Indications and the Competitive Provision of Quality in Agricultural Markets," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 90(3), pages 794-812.
    9. Cross, Robin & Plantinga, Andrew J. & Stavins, Robert N., 2011. "The Value of Terroir: Hedonic Estimation of Vineyard Sale Prices," Journal of Wine Economics, Cambridge University Press, vol. 6(1), pages 1-14, January.
    10. Thijs Vandemoortele & Koen Deconinck, 2014. "When Are Private Standards More Stringent than Public Standards?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 96(1), pages 154-171.
    11. Johan F.M. Swinnen & Thijs Vandemoortele, 2009. "Are food safety standards different from other food standards? A political economy perspective," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 36(4), pages 507-523, December.
    12. Grossman, Gene M & Helpman, Elhanan, 1994. "Protection for Sale," American Economic Review, American Economic Association, vol. 84(4), pages 833-850, September.
    13. James Simpson, 2011. "Creating Wine: The Emergence of a World Industry, 1840-1914," Economics Books, Princeton University Press, edition 1, number 9479.
    14. Esther W. de Bekker‐Grob & Mandy Ryan & Karen Gerard, 2012. "Discrete choice experiments in health economics: a review of the literature," Health Economics, John Wiley & Sons, Ltd., vol. 21(2), pages 145-172, February.
    15. Mussa, Michael & Rosen, Sherwin, 1978. "Monopoly and product quality," Journal of Economic Theory, Elsevier, vol. 18(2), pages 301-317, August.
    16. Pierre Mérel & Richard J. Sexton, 2012. "Will geographical indications supply excessive quality?," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 39(4), pages 567-587, September.
    17. James, Jennifer S. & Alston, Julian M., 2002. "Taxes and quality: A market-level analysis," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 46(3), pages 1-29.
    18. Johan F. M. Swinnen & Thijs Vandemoortele, 2011. "Trade and the Political Economy of Food Standards," Journal of Agricultural Economics, Wiley Blackwell, vol. 62(2), pages 259-280, June.
    19. Gergaud, Olivier & Ginsburgh, Victor, 2010. "Natural Endowments, Production Technologies and the Quality of Wines in Bordeaux. Does Terroir Matter?," Journal of Wine Economics, Cambridge University Press, vol. 5(01), pages 3-21, March.
    20. Tim Josling, 2006. "The War on Terroir: Geographical Indications as a Transatlantic Trade Conflict," Journal of Agricultural Economics, Wiley Blackwell, vol. 57(3), pages 337-363, September.
    21. A. Michael Spence, 1975. "Monopoly, Quality, and Regulation," Bell Journal of Economics, The RAND Corporation, vol. 6(2), pages 417-429, Autumn.
    22. Chiara Landi & Gianluca Stefani, 2015. "Rent Seeking and Political Economy of Geographical Indication Foods," Agribusiness, John Wiley & Sons, Ltd., vol. 31(4), pages 543-563, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. William Skinner & Georgina Drew & Douglas K. Bardsley, 2023. "“Half a flood’s no good”: flooding, viticulture, and hydrosocial terroir in a South Australian wine region," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 40(2), pages 549-564, June.
    2. Costanigro, Marco & Scozzafava, Gabriele & Casini, Leonardo, 2019. "Vertical differentiation via multi-tier geographical indications and the consumer perception of quality: The case of Chianti wines," Food Policy, Elsevier, vol. 83(C), pages 246-259.
    3. Duvaleix, Sabine & Emlinger, Charlotte & Gaigné, Carl & Latouche, Karine, 2021. "Geographical indications and trade: Firm-level evidence from the French cheese industry," Food Policy, Elsevier, vol. 102(C).
    4. Cockx, Lara & Meloni, Giulia & Swinnen, Johan, 2021. "The Water of Life and Death: A Brief Economic History of Spirits," Journal of Wine Economics, Cambridge University Press, vol. 16(4), pages 355-399, November.
    5. repec:lic:licosd:41719 is not listed on IDEAS
    6. Catherine Haeck & Giulia Meloni & Johan Swinnen, 2019. "The Value of Terroir: A Historical Analysis of the Bordeaux and Champagne Geographical Indications," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 41(4), pages 598-619, December.
    7. Saïdi, Monia & Ay, Jean-Sauveur & Marette, Stéphan & Martin, Christophe, 2020. "Willingness-to-Pay for Reshuffling Geographical Indications," Journal of Wine Economics, Cambridge University Press, vol. 15(1), pages 95-111, February.
    8. Guilherme Silva Fracarolli, 2021. "Global Markets, Local Issues: The Hegemonic Process of Agri-Food Construction to Present Challenges," Land, MDPI, vol. 10(11), pages 1-24, November.
    9. Resce, Giuliano & Vaquero-Piñeiro, Cristina, 2022. "Predicting agri-food quality across space: A Machine Learning model for the acknowledgment of Geographical Indications," Food Policy, Elsevier, vol. 112(C).
    10. Jean‐Sauveur Ay, 2021. "The Informational Content of Geographical Indications," American Journal of Agricultural Economics, John Wiley & Sons, vol. 103(2), pages 523-542, March.
    11. Susana López‐Bayón & Marta Fernández‐Barcala & Manuel González‐Díaz, 2020. "In search of agri‐food quality for wine: Is it enough to join a geographical indication?," Agribusiness, John Wiley & Sons, Ltd., vol. 36(4), pages 568-590, October.
    12. Huysmans, Martijn, 2021. "On Feta and Fetta: Protecting EU Geographical Indications Down Under," 2021 Conference, August 17-31, 2021, Virtual 314978, International Association of Agricultural Economists.
    13. repec:lic:licosd:40818 is not listed on IDEAS
    14. Martijn Huysmans, 2022. "On Feta and Fetta: Protecting EU geographical indications in Australia," Journal of Agricultural Economics, Wiley Blackwell, vol. 73(2), pages 598-613, June.
    15. Eugenio Pomarici & Roberta Sardone, 2020. "EU wine policy in the framework of the CAP: post-2020 challenges," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 8(1), pages 1-40, December.
    16. Daniele Curzi & Martijn Huysmans, 2022. "The Impact of Protecting EU Geographical Indications in Trade Agreements," American Journal of Agricultural Economics, John Wiley & Sons, vol. 104(1), pages 364-384, January.
    17. Raul Serrano & Natalia Dejo‐Oricain & Juan Ferrer & Vicente Pinilla & Silvia Abella‐Garcés & Maria Teresa Maza, 2023. "Domestic clustered networks and internationalization of agrifood SMEs," Agribusiness, John Wiley & Sons, Ltd., vol. 39(1), pages 167-195, January.
    18. Guilherme Silva Fracarolli, 2021. "Mapping Online Geographical Indication: Agrifood Products on E-Commerce Shelves of Mercosur and the European Union," Economies, MDPI, vol. 9(2), pages 1-20, May.
    19. M. Huysmans, 2019. "Exporting protection: EU trade agreements, geographical indications, and gastronationalism," Working Papers 19-26, Utrecht School of Economics.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. repec:lic:licosd:37215 is not listed on IDEAS
    2. repec:lic:licosd:40818 is not listed on IDEAS
    3. Meloni, Giulia & Swinnen, Johan, 2018. "Trade and terroir. The political economy of the world’s first geographical indications," Food Policy, Elsevier, vol. 81(C), pages 1-20.
    4. Annalisa Zezza & Federica Demaria & Maria Rosaria Pupo d'Andrea & Jo Swinnen & Giulia Meloni & Senne Vandevelde & Alessandro Olper & Daniele Curzi & Valentina Raimondi & Sophie Drogue, 2018. "Research for AGRI Committee - Agricultural trade: assessing reciprocity of standards," Working Papers hal-02787948, HAL.
    5. Catherine Haeck & Giulia Meloni & Johan Swinnen, 2019. "The Value of Terroir: A Historical Analysis of the Bordeaux and Champagne Geographical Indications," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 41(4), pages 598-619, December.
    6. Koen Deconinck & Jo Swinnen, 2021. "The Size of Terroir: A Theoretical Note on Economics and Politics of Geographical Indications," Journal of Agricultural Economics, Wiley Blackwell, vol. 72(1), pages 321-328, February.
    7. Pecchioli, Bruno & Moroz, David, 2023. "Do geographical appellations provide useful quality signals? The case of Scotch single malt whiskies," Economic Modelling, Elsevier, vol. 124(C).
    8. Jean‐Sauveur Ay, 2021. "The Informational Content of Geographical Indications," American Journal of Agricultural Economics, John Wiley & Sons, vol. 103(2), pages 523-542, March.
    9. Valentina Raimondi & Chiara Falco & Daniele Curzi & Alessandro Olper, 2020. "Trade effects of geographical indication policy: The EU case," Journal of Agricultural Economics, Wiley Blackwell, vol. 71(2), pages 330-356, June.
    10. Daniele Curzi & Martijn Huysmans, 2022. "The Impact of Protecting EU Geographical Indications in Trade Agreements," American Journal of Agricultural Economics, John Wiley & Sons, vol. 104(1), pages 364-384, January.
    11. repec:lic:licosd:33313 is not listed on IDEAS
    12. Chiara Landi & Gianluca Stefani, 2015. "Rent Seeking and Political Economy of Geographical Indication Foods," Agribusiness, John Wiley & Sons, Ltd., vol. 31(4), pages 543-563, October.
    13. Swinnen, J. & Meloni, G. & Haeck, C., 2018. "What is the Value of Terroir? Historical Evidence from Champagne and Bordeaux," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277221, International Association of Agricultural Economists.
    14. Giulia Meloni & Kym Anderson & Koen Deconinck & Johan Swinnen, 2019. "Wine Regulations," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 41(4), pages 620-649, December.
    15. repec:lic:licosd:27611 is not listed on IDEAS
    16. Daniela Benavente, 2010. "The Economics of Geographical Indications: GIs Modelled As Club Assets," IHEID Working Papers 10-2010, Economics Section, The Graduate Institute of International Studies.
    17. Daniela Benavente, 2010. "Geographical Indications: The Economics of Claw-Back," IHEID Working Papers 11-2010, Economics Section, The Graduate Institute of International Studies.
    18. Irz, Xavier & Mazzocchi, Mario & Réquillart, Vincent & Soler, Louis-Georges, 2015. "Research in Food Economics: past trends and new challenges," Revue d'Etudes en Agriculture et Environnement, Editions NecPlus, vol. 96(01), pages 187-237, March.
    19. Loïc Henry, 2023. "Adapting the designated area of geographical indications to climate change," American Journal of Agricultural Economics, John Wiley & Sons, vol. 105(4), pages 1088-1115, August.
    20. John C. Beghin & Miet Maertens & Johan Swinnen, 2017. "Nontariff Measures and Standards in Trade and Global Value Chains," World Scientific Book Chapters,in: Nontariff Measures and International Trade, chapter 2, pages 13-38 World Scientific Publishing Co. Pte. Ltd..
    21. John C. Beghin & Miet Maertens & Johan Swinnen, 2017. "Nontariff Measures and Standards in Trade and Global Value Chains," World Scientific Book Chapters, in: John Christopher Beghin (ed.), Nontariff Measures and International Trade, chapter 2, pages 13-38, World Scientific Publishing Co. Pte. Ltd..
    22. Myriam Carrère & Federica DeMaria & Sophie Drogué, 2018. "Maximum residual levels of pesticides and public health: best friends or faux amis?," Agricultural Economics, International Association of Agricultural Economists, vol. 49(1), pages 111-118, January.
    23. Stranieri, Stefanella & Orsi, Luigi & De Noni, Ivan & Olper, Alessandro, 2023. "Geographical Indications and Innovation: Evidence from EU regions," Food Policy, Elsevier, vol. 116(C).
    24. repec:lic:licosd:32012 is not listed on IDEAS
    25. Olper, Alessandro, 2017. "The political economy of trade-related regulatory policy: environment and global value chain," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), vol. 5(3), February.

    More about this item

    Keywords

    KUL-METH-Institutions;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ete:licosp:509755. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: library EBIB (email available below). General contact details of provider: https://feb.kuleuven.be/LICOS .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.