Journal of Rural Development
The Social Welfare Impact of the Country-of-Origin Labelling System
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AuthorLee, Kyeiim
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Publication Date2012.04.21
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Original
This study aims to analyze the social welfare impact of the country-of-origin labelling system.
An equilibrium displacement model(EDM) was used for chili powder, bean and bean curd, beef, pork and ham, and changes in social welfare were analyzed. Analysis showed that the distribution cost for country-of-origin labelling was 0.07~0.25% of selling price and the amount which consumers are willing to pay was 2.4~3.2% of selling price. It was analyzed that the amount of net social welfare was increased by 461.8~744.6 billion won even after the administrative cost and the fixed cost for the operation of the country-of-origin labelling system were considered. As the country-of-origin labelling system was proved to increase the net social welfare, it is necessary to implement measures to activate the system continuously in the future.
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