IDEAS home Printed from https://ideas.repec.org/p/ags/ualbpr/24052.html
   My bibliography  Save this paper

Risk Perceptions, Social Interactions and the Influence of Information on Social Attitudes to Agricultural Biotechnology

Author

Listed:
  • Veeman, Michele M.
  • Adamowicz, Wiktor L.
  • Hu, Wuyang

Abstract

We assess Canadian’s risk perceptions for genetically modified (GM) food and probe influences of socio-economic, demographic and other factors impinging on these perceptions. An internet-administered questionnaire with two stated choice split-sample experiments that approximate market choices of individual grocery shoppers is applied to elicit purchase behavior from 882 respondents across Canada. Data are collected to assess the influence on respondents’ choices for a specific food product (bread) of 1) product information which varies in content and by source and 2) information provided through labeling. These data also enable: a) analysis of trade-offs made by consumers between possible risks associated with GM ingredients and potential health or environment benefits in food and b) assessment of influences on respondents’ search for/access of product information. We rigorously document the extent and type of variation in Canadian consumers’ attitudes and risk perceptions for a selected GM food. This is pursued in analysis of experiment 1) data using a latent class model to analyze 445 consumers’ choices for bread products. We identify four distinct groups of Canadian consumers: 51% (value seekers) valued additional health or environmental benefits and were indifferent to GM content; traditional consumers (14 %) preferred their normally-purchased food; fringe consumers (4%) valued the health attribute and could defer consumption. Another 32 % (anti-GM) strongly opposed GM ingredients in food irrespective of introduced attributes. Thus there is a dichotomy in Canadian attitudes to GM content in food: a small majority of the sample (55 per cent) perceive little or no risk from GM food, but this is strongly opposed by 46% of respondents. Differences in gender, number of children in the household, education, and age are associated with the likelihood of segment membership. We also report on the search for information on characteristics of the GM food by a sample of 445 respondents with opportunity for voluntary access to related information through hyperlinks in the survey. Slightly less than half actually sought such information. Gender, employment status, rural or urban residency and the number of children in the household all affected the probability that respondents would access information. A further research component examines product choices made in the context of two common GM labeling policies: mandatory and voluntary labeling. We find these two types of strategies to have distinctive impacts on consumers and on measures of social welfare. Knowledge of these may help policy makers to make more informed analyses of the alternative labeling policies. Specific findings also provide base-line measures of Canadians’ attitudes to risks of GM technology in the context of food and environmental risks, as well as documenting the importance of context influences and reference points on consumers’ preferences for GM food. We also develop methodological improvements for accurately estimating the value of information on a negative attribute. The project built upon initial findings from a previous AARI project (#AARI Project #2000D037) and is complemented by research supported through a Genome Prairie GE3LS (Genetics, Ethics, Environment, Economics, Law and Society) project: “Commercialization and society: its policy and strategic implications.”

Suggested Citation

  • Veeman, Michele M. & Adamowicz, Wiktor L. & Hu, Wuyang, 2005. "Risk Perceptions, Social Interactions and the Influence of Information on Social Attitudes to Agricultural Biotechnology," Project Report Series 24052, University of Alberta, Department of Resource Economics and Environmental Sociology.
  • Handle: RePEc:ags:ualbpr:24052
    DOI: 10.22004/ag.econ.24052
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/24052/files/pr050002.pdf
    Download Restriction: no

    File URL: https://libkey.io/10.22004/ag.econ.24052?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Wallace E. Huffman & Matthew Rousu & Jason F. Shogren & Abebayehu Tegene, 2004. "Who Do Consumers Trust for Information: The Case of Genetically Modified Foods?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(5), pages 1222-1229.
    2. Punj, Girish N & Staelin, Richard, 1983. "A Model of Consumer Information Search Behavior for New Automobiles," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 9(4), pages 366-380, March.
    3. Matthew C. Rousu & Wallace E. Huffman & Jason F. Shogren & Abebayehu Tegene, 2004. "Estimating the Public Value of Conflicting Information: The Case of Genetically Modified Foods," Land Economics, University of Wisconsin Press, vol. 80(1), pages 125-135.
    4. Stigler, George J., 2011. "Economics of Information," Ekonomicheskaya Politika / Economic Policy, Russian Presidential Academy of National Economy and Public Administration, vol. 5, pages 35-49.
    5. Kahneman, Daniel & Tversky, Amos, 1979. "Prospect Theory: An Analysis of Decision under Risk," Econometrica, Econometric Society, vol. 47(2), pages 263-291, March.
    6. P. A. Kuperis & M. M. Veeman & W. L. Adamowicz, 1999. "Consumer's Responses to the Potential Use of Bovine Somatotrophin in Canadian Dairy Production," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 47(2), pages 151-163, July.
    7. Sallie James & Michael Burton, 2003. "Consumer preferences for GM food and other attributes of the food system," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 47(4), pages 501-518, December.
    8. Diane McCann-Hiltz & Michele Veeman & Wiktor Adamowicz & Wuyang Hu, 2004. "Agricultural Biotechnology: A Comparison of Consumers' Preferences for Selected Policy Options," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 52(3), pages 333-350, November.
    9. Amos Tversky & Daniel Kahneman, 1991. "Loss Aversion in Riskless Choice: A Reference-Dependent Model," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 106(4), pages 1039-1061.
    10. Urbany, Joel E, 1986. "An Experimental Examination of the Economics of Information," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 13(2), pages 257-271, September.
    11. Huffman, Wallace E. & Shogren, Jason F. & Rousu, Matthew C. & 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(3), pages 1-22, December.
    12. Rousu, M. & Huffman, Wallace & Shogren, Jason F. & Tegene, Abebayehu, 2004. "Estimating the Public Value of Information: Genetically Modified Foods," Staff General Research Papers Archive 10426, Iowa State University, Department of Economics.
    13. Jutta Roosen & Jayson L. Lusk & John A. Fox, 2003. "Consumer demand for and attitudes toward alternative beef labeling strategies in France, Germany, and the UK," Agribusiness, John Wiley & Sons, Ltd., vol. 19(1), pages 77-90.
    14. Vanwechel, Tamara & Wachenheim, Cheryl J. & Schuck, Eric C. & Lambert, David K., 2003. "Consumer Valuation Of Genetically Modified Foods And The Effect Of Information Bias," Agribusiness & Applied Economics Report 23620, North Dakota State University, Department of Agribusiness and Applied Economics.
    15. Noussair, Charles & Robin, Stephane & Ruffieux, Bernard, 2002. "Do consumers not care about biotech foods or do they just not read the labels?," Economics Letters, Elsevier, vol. 75(1), pages 47-53, March.
    16. Jayson L. Lusk & Jutta Roosen & John A. Fox, 2003. "Demand for Beef from Cattle Administered Growth Hormones or Fed Genetically Modified Corn: A Comparison of Consumers in France, Germany, the United Kingdom, and the United States," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(1), pages 16-29.
    17. Veeman, Michele M., 2001. "Consumers, Public Perceptions And Biotechnology," Staff Paper Series 24079, University of Alberta, Department of Resource Economics and Environmental Sociology.
    18. Wuyang Hu & Michele M. Veeman & Wiktor L. Adamowicz, 2005. "Labelling Genetically Modified Food: Heterogeneous Consumer Preferences and the Value of Information," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 53(1), pages 83-102, March.
    19. Charles Noussair & StÈphane Robin & Bernard Ruffieux, 2004. "Do Consumers Really Refuse To Buy Genetically Modified Food?," Economic Journal, Royal Economic Society, vol. 114(492), pages 102-120, January.
    20. Adamowicz, Wiktor L. & Veeman, Michele M. & White, Elspeth, 2004. "Financial And Health Costs Of Pesticide Use In Growing Conventional And Genetically Modified Potatoes In Prince Edward Island," Annual Meeting, 2004, June 20-23, Halifax, Nova Scotia 34199, Canadian Agricultural Economics Society.
    21. Maute, Manfred F. & Forrester, William Jr., 1991. "The effect of attribute qualities on consumer decision making: a causal model of external information search," Journal of Economic Psychology, Elsevier, vol. 12(4), pages 643-666, December.
    22. Kahneman, Daniel, 1992. "Reference points, anchors, norms, and mixed feelings," Organizational Behavior and Human Decision Processes, Elsevier, vol. 51(2), pages 296-312, March.
    23. Srinivasan, Narasimhan & Ratchford, Brian T, 1991. "An Empirical Test of a Model of External Search for Automobiles," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 18(2), pages 233-242, September.
    24. Alan Schwartz & Louis L. Wilde, 1985. "Product Quality and Imperfect Information," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 52(2), pages 251-262.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Rodríguez-Entrena, Macario & Salazar-Ordóñez, Melania & Sayadi, Samir, 2013. "Applying partial least squares to model genetically modified food purchase intentions in southern Spain consumers," Food Policy, Elsevier, vol. 40(C), pages 44-53.
    2. Joseph Seong & Simone Valle de Souza & H. Christopher Peterson, 2023. "Seeds of Industry Sustainability: Consumer Attitudes towards Indoor Agriculture Benefits versus Its Advanced Technology," Sustainability, MDPI, vol. 15(3), pages 1-21, January.
    3. Wenjing Zhang & Jianhong Xue & Henk Folmer & Khadim Hussain, 2019. "Perceived Risk of Genetically Modified Foods Among Residents in Xi’an, China: A Structural Equation Modeling Approach," IJERPH, MDPI, vol. 16(4), pages 1-12, February.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Gautam, Ruskin & Gustafson, Christopher R. & Brooks, Kathleen R., 2017. "Label Position and it Impacts on WTP for Products Containing GMO," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 258105, Agricultural and Applied Economics Association.
    2. Wuyang Hu & Wiktor L. Adamowicz & Michele M. Veeman, 2009. "Consumers' Preferences for GM Food and Voluntary Information Access: A Simultaneous Choice Analysis," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 57(2), pages 241-267, June.
    3. repec:ken:wpaper:0801 is not listed on IDEAS
    4. Lusk, Jayson L. & Jamal, Mustafa & Kurlander, Lauren & Roucan, Maud & Taulman, Lesley, 2005. "A Meta-Analysis of Genetically Modified Food Valuation Studies," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 30(1), pages 1-17, April.
    5. Rousu, Matthew C. & Beach, Robert H. & Corrigan, Jay R., 2005. "Demand Curve Shifts in Multi-Unit Auctions: Evidence from a Laboratory Experiment," 2005 Annual meeting, July 24-27, Providence, RI 19513, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    6. Dannenberg, Astrid, 2009. "The dispersion and development of consumer preferences for genetically modified food -- A meta-analysis," Ecological Economics, Elsevier, vol. 68(8-9), pages 2182-2192, June.
    7. Wuyang Hu & Michele M. Veeman & Wiktor L. Adamowicz, 2005. "Labelling Genetically Modified Food: Heterogeneous Consumer Preferences and the Value of Information," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 53(1), pages 83-102, March.
    8. Karavolias, Joanna & House, Lisa A., "undated". "Impact of Producer and Use of Biotechnology on Consumer Willingness to Pay: Discounts Required for Oranges Produced with Biotechnology," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 259981, Agricultural and Applied Economics Association.
    9. Costa-Font, Montserrat & Gil, José M. & Traill, W. Bruce, 2008. "Consumer acceptance, valuation of and attitudes towards genetically modified food: Review and implications for food policy," Food Policy, Elsevier, vol. 33(2), pages 99-111, April.
    10. DeSarbo, Wayne S. & Choi, Jungwhan, 1998. "A latent structure double hurdle regression model for exploring heterogeneity in consumer search patterns," Journal of Econometrics, Elsevier, vol. 89(1-2), pages 423-455, November.
    11. Dickinson, David L. & Bailey, DeeVon, 2005. "Experimental Evidence on Willingness to Pay for Red Meat Traceability in the United States, Canada, the United Kingdom, and Japan," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 37(3), pages 1-12, December.
    12. Guillaume P. Gruère & Colin A. Carter & Y. Hossein Farzin, 2008. "What labelling policy for consumer choice? The case of genetically modified food in Canada and Europe," Canadian Journal of Economics, Canadian Economics Association, vol. 41(4), pages 1472-1497, November.
    13. Huffman, Wallace E. & Rousu, Matthew & Shogren, Jason F. & Tegene, Abebayehu, 2007. "The effects of prior beliefs and learning on consumers' acceptance of genetically modified foods," Journal of Economic Behavior & Organization, Elsevier, vol. 63(1), pages 193-206, May.
    14. Wang, Shuxian & Wu, Linhai & Zhu, Dian & Wang, Hongsha & Xu, Lingling, 2014. "Chinese consumers’ preferences and willingness to pay for traceable food attributes: The case of pork," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 165639, Agricultural and Applied Economics Association.
    15. Bansal, Sangeeta & Chakravarty, Sujoy & Ramaswami, Bharat, 2013. "The informational and signaling impacts of labels: experimental evidence from India on GM foods," Environment and Development Economics, Cambridge University Press, vol. 18(6), pages 701-722, December.
    16. Kaneko, Naoya & Chern, Wen S., 2005. "Willingness to Pay for Genetically Modified Oil, Cornflakes, and Salmon: Evidence from a U.S. Telephone Survey," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 37(3), pages 1-19, December.
    17. Wu, Linhai & Wang, Shuxian & Zhu, Dian & Hu, Wuyang & Wang, Hongsha, 2015. "Chinese consumers’ preferences and willingness to pay for traceable food quality and safety attributes: The case of pork," China Economic Review, Elsevier, vol. 35(C), pages 121-136.
    18. Smith, Gerald E. & Venkatraman, Meera P. & Dholakia, Ruby Roy, 1999. "Diagnosing the search cost effect: Waiting time and the moderating impact of prior category knowledge," Journal of Economic Psychology, Elsevier, vol. 20(3), pages 285-314, June.
    19. Dannenberg, Astrid, 2008. "Is it Who You Ask or How You Ask? Findings of a Meta-Analysis on Genetically Modified Food Valuation Studies," ZEW Discussion Papers 08-096, ZEW - Leibniz Centre for European Economic Research.
    20. Carlsson, Fredrik & Frykblom, Peter & Lagerkvist, Carl Johan, 2004. "Consumer benefits of labels and bans on genetically modified food - An empirical analysis using Choice Experiments," 2004 Annual meeting, August 1-4, Denver, CO 20370, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    21. Alexandre Magnier & Nicholas Kalaitzandonakes & Jayson Lusk, 2022. "Changes in Consumer Preferences toward Non‐GM Foods within an Information‐Rich Environment: The Case of the Washington State Ballot Initiative," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 44(1), pages 489-510, March.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:ualbpr:24052. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/drualca.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.