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GMO food labels in the United States: Economic implications of the new law

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  • Bovay, John
  • Alston, Julian M.

Abstract

In July 2016, the U.S. Congress passed Senate Bill 764, which requires the U.S. Department of Agriculture to establish a national disclosure standard for GE foods, as a compromise between forces pressing for a much stricter labeling law versus forces that opposed mandatory labeling laws altogether. The legislation, now known as Public Law 114-216, also preempts states from setting their own standards for mandatory GE labels. This article discusses the implementation of the new law and its potential economic consequences. We conclude that PL 114-216 is worse than a complete absence of mandatory labeling laws. However, it should be better than the likely scenario of policies that it pre-empted, and could be reasonably inexpensive, depending on the implementation details of the new law—which are yet to be determined—and how producers and consumers choose to respond to it.

Suggested Citation

  • Bovay, John & Alston, Julian M., 2018. "GMO food labels in the United States: Economic implications of the new law," Food Policy, Elsevier, vol. 78(C), pages 14-25.
    • Handle: RePEc:eee:jfpoli:v:78:y:2018:i:c:p:14-25
    DOI: 10.1016/j.foodpol.2018.02.013
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    2. Dolores Garrido & Ana Espínola‐Arredondo & Felix Munoz‐Garcia, 2020. "Can mandatory certification promote greenwashing? A signaling approach," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 22(6), pages 1801-1851, December.
    3. Aaron Adalja & Jūra Liaukonytė & Emily Wang & Xinrong Zhu, 2023. "GMO and Non-GMO Labeling Effects: Evidence from a Quasi-Natural Experiment," Marketing Science, INFORMS, vol. 42(2), pages 233-250, March.
    4. Justus Wesseler & Gijs Kleter & Marthe Meulenbroek & Kai P. Purnhagen, 2023. "EU regulation of genetically modified microorganisms in light of new policy developments: Possible implications for EU bioeconomy investments," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 45(2), pages 839-859, June.
    5. Kai Purnhagen & Justus Wesseler, 2021. "EU Regulation of New Plant Breeding Technologies and Their Possible Economic Implications for the EU and Beyond," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 43(4), pages 1621-1637, December.
    6. Dan Jiang & Guangling Zhang, 2021. "Marketing Clues on the Label Raise the Purchase Intention of Genetically Modified Food," Sustainability, MDPI, vol. 13(17), pages 1-20, September.
    7. Hopkins, Kelsey A. & McKendree, Melissa G. S. & Rice, Emma D., 2020. "Understanding the U.S. Publics’ Voting on Animal Welfare and Genetically Modified Organism Labeling Ballot Initiatives," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304519, Agricultural and Applied Economics Association.
    8. Lee, Yunkyung & Perrin, Richard K. & Fulginiti, Lilyan E., 2022. "Potential Economic Impacts of Gene-edited High-oleic Soybeans," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322392, Agricultural and Applied Economics Association.
    9. Hopkins, Kelsey A. & McKendree, Melissa G.S. & Schaefer, K. Aleks, 2022. "Resolving the reality gap in farm regulation voting models," Food Policy, Elsevier, vol. 112(C).
    10. Elena Rosculete & Elena Bonciu & Catalin Aurelian Rosculete & Elena Teleanu, 2018. "Detection and Quantification of Genetically Modified Soybean in Some Food and Feed Products. A Case Study on Products Available on Romanian Market," Sustainability, MDPI, vol. 10(5), pages 1-13, April.
    11. Katrina Oselinsky & Ashlie Johnson & Pamela Lundeberg & Abby Johnson Holm & Megan Mueller & Dan J. Graham, 2021. "GMO Food Labels Do Not Affect College Student Food Selection, Despite Negative Attitudes towards GMOs," IJERPH, MDPI, vol. 18(4), pages 1-19, February.
    12. Carter, Colin Andre & Schaefer, K. Aleks, 2018. "GE Labeling Laws and Segmentation of the Sugar Market," 2018 Annual Meeting, August 5-7, Washington, D.C. 273855, Agricultural and Applied Economics Association.

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