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An Experimental Investigation of Willingness to Pay for Non-GM and Organic Food Products

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Author Info
Gifford, Katie
Bernard, John C.
Toensmeyer, Ulrich C.
Bacon, Richard
Abstract

The appearance and rapid adoption of genetically modified (GM) foods and the strong growth in organic foods are two of the major trends that have influenced the food system over the past several years. The purpose of this research was to determine consumer willingness to pay (WTP) for non-GM and organic foods relative to conventional foods and to see if WTP differences between the three categories vary between fresh and processed food products. Experimental auctions with 133 subjects from three states (Delaware, Maryland, and Pennsylvania) were conducted. Tobit models were run with the bids as functions of demographic and knowledge and attitude variables. Results suggest an untapped market exists for non-GM products at a substantial premium over conventional, yet less than organic. This segment may be difficult to identify though as attitude variables were more important explainers of bids than demographics.

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File URL: http://purl.umn.edu/19385
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Publisher Info
Paper provided by American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) in its series 2005 Annual meeting, July 24-27, Providence, RI with number 19385.

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Date of creation: 2005
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Handle: RePEc:ags:aaea05:19385

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Keywords: Consumer/Household Economics;

References listed on IDEAS
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  1. Dimitri, Carolyn & Greene, Catherine, 2002. "Recent Growth Patterns In The U.S. Organic Foods Market," Agricultural Information Bulletins 33715, United States Department of Agriculture, Economic Research Service. [Downloadable!]
  2. Huffman, Wallace E. & Shogren, Jason F. & Rousu, Matthew & Tegene, Abebayehu, 2003. "Consumer Willingness to Pay for Genetically Modified Food Labels in a Market with Diverse Information: Evidence from Experimental Auctions," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 28(03), December. [Downloadable!]
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  3. Govindasamy, Ramu & Italia, John, 1999. "Predicting Willingness-To-Pay A Premium For Organically Grown Fresh Produce," Journal of Food Distribution Research, Food Distribution Research Society, vol. 30(2), July. [Downloadable!]
  4. Frode Alfnes & Kyrre Rickertsen, 2003. "European Consumers' Willingness to Pay for U.S. Beef in Experimental Auction Markets," American Journal of Agricultural Economics, American Agricultural Economics Association, vol. 85(2), pages 396-405, 05. [Downloadable!] (restricted)
  5. Lusk, Jayson L. & Daniel, M. Scott & Mark, Darrell R. & Lusk, Christine L., 2001. "Alternative Calibration And Auction Institutions For Predicting Consumer Willingess To Pay For Nongenetically Modified Corn Chips," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 26(01), July. [Downloadable!]
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