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What labelling policy for consumer choice? The case of genetically modified food in Canada and Europe

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Author Info
Guillaume P. Gruère
Colin A. Carter
Y. Hossein Farzin

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Abstract

Faced with divergent opinions among consumers on the use of genetically modified (GM) foods, Canada has adopted a voluntary labelling approach for non-GM foods, whereas the European Union has a mandatory labelling policy for GM foods. Interestingly, both labelling systems have resulted in very little, if any, additional consumer choice. Using an analytical model, we show that the coexistence of GM and non-GM products at the retail level depends on the labelling policy, consumer perceptions, and the type of product. Although voluntary labelling tends to favour the use of GM products, it is more likely to provide consumer choice.

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File URL: http://economics.ca/cgi/xms?jab=v41n4/CJEv41n4p1472.pdf
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Publisher Info
Article provided by Canadian Economics Association in its journal Canadian Journal of Economics.

Volume (Year): 41 (2008)
Issue (Month): 4 (November)
Pages: 1472-1497
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Handle: RePEc:cje:issued:v:41:y:2008:i:4:p:1472-1497

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Find related papers by JEL classification:
L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality
Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy

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This page was last updated on 2009-11-25.

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