Welfare analysis of organic dairy certification: a graphical assessment.

Today, the concept of sustainable growth is at the heart of political debate. However, this concept still eludes practical meaning and often organic agriculture and sustainable agriculture are intertwined. This paper focuses specifically on organic dairy product and the potential welfare impacts of the Transatlantic Trade Investment Partnership between the European Union and the United States. To evaluate the welfare impact of the TTIP, we use the extend traditional welfare analysis proposed by Brusselaers et al., 2015 to account for organic certification. Graphical assessment shows that by internalizing externalities American consumers and European Consumer gain welfare, and American consumers and European Producers loss welfare. In such case European policies supporting organic farming system benefit to the American consumers.

http://ift.tt/2oviX2C