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Differences in WTP and Consumer Demand for Organic and Non-GM Fresh and Processed Foods

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  • He, Na
  • Bernard, John C.

Abstract

Auction experiments were used to examine demand and premium differences between organic, non-GM (genetically modified), and conventional versions for two pairs of fresh and processed foods. Results showed processed foods had greater substitutability among the versions than fresh products. Conventional versions were the least price sensitive, while non-GM versions were the most sensitive. Significant premium differences were found between fresh and processed foods for sweet corn and tortilla chips, but not for potatoes and potato chips. Results from random effects models mirrored these findings. In general, the extent of premium differences between fresh and processed versions appears dependent on the food product.

Suggested Citation

  • He, Na & Bernard, John C., 2011. "Differences in WTP and Consumer Demand for Organic and Non-GM Fresh and Processed Foods," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 40(2), pages 1-15, August.
    • Handle: RePEc:ags:arerjl:117773
    DOI: 10.22004/ag.econ.117773
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    References listed on IDEAS

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    Cited by:

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    2. Martha A. Starr, 2015. "The Economics of Ethical Consumption," Working Papers 2015-01, American University, Department of Economics.
    3. Savchenko, Olesya M. & Kecinski, Maik & Li, Tongzhe & Messer, Kent D. & Xu, Huidong, 2018. "Fresh foods irrigated with recycled water: A framed field experiment on consumer responses," Food Policy, Elsevier, vol. 80(C), pages 103-112.
    4. Eva Tebbe & Korbinian von Blanckenburg, 2018. "Does willingness to pay increase with the number and strictness of sustainability labels?," Agricultural Economics, International Association of Agricultural Economists, vol. 49(1), pages 41-53, January.
    5. McFadden, Brandon R. & Malone, Trey, 2018. "How will mandatory labeling of genetically modified food nudge consumer decision-making?," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 77(C), pages 186-194.
    6. András István Kun & Marietta Kiss, 2021. "On the Mechanics of the Organic Label Effect: How Does Organic Labeling Change Consumer Evaluation of Food Products?," Sustainability, MDPI, vol. 13(3), pages 1-25, January.
    7. McFadden, Jonathan R. & Huffman, Wallace E., 2017. "Willingness-to-pay for natural, organic, and conventional foods: The effects of information and meaningful labels," Food Policy, Elsevier, vol. 68(C), pages 214-232.

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