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

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Author Info
Veeman, Michele
Adamowicz, Wiktor
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.”

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Paper provided by University of Alberta, Department of Rural Economy in its series Project Report Series with number 24052.

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Date of creation: 2005
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Handle: RePEc:ags:ualbpr:24052

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Keywords: Research and Development/Tech Change/Emerging Technologies;

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References listed on IDEAS
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  1. Veeman, Michele, 2001. "Consumers, Public Perceptions And Biotechnology," Staff Paper Series 24079, University of Alberta, Department of Rural Economy. [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!]
    Other versions:
  3. Roosen, Jutta & Lusk, Jayson L. & Fox, John A., 2001. "Consumer Demand For And Attitudes Toward Alternative Beef Labeling Strategies In France, Germany, And The Uk," 2001 Annual meeting, August 5-8, Chicago, IL 20643, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
  4. 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, American Agricultural Economics Association, vol. 85(1), pages 16-29, 02. [Downloadable!] (restricted)
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  5. 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. [Downloadable!] (restricted)
  6. Srinivasan, Narasimhan & Ratchford, Brian T, 1991. " An Empirical Test of a Model of External Search for Automobiles," Journal of Consumer Research: An Interdisciplinary Quarterly, University of Chicago Press, vol. 18(2), pages 233-42, September.
  7. Huffman, Wallace & Rousu, Matthew & Shogren, Jason & Tegene, Abebayehu, 2002. "Who Do Consumers Trust for Information? The Case of Genetically Modified Foods," Staff General Research Papers 10061, Iowa State University, Department of Economics.
  8. Kahneman, Daniel & Tversky, Amos, 1979. "Prospect Theory: An Analysis of Decision under Risk," Econometrica, Econometric Society, vol. 47(2), pages 263-91, March. [Downloadable!] (restricted)
  9. 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, 01. [Downloadable!] (restricted)
  10. Schwartz, Alan & Wilde, Louis L, 1985. "Product Quality and Imperfect Information," Review of Economic Studies, Blackwell Publishing, vol. 52(2), pages 251-62, April. [Downloadable!] (restricted)
  11. 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. [Downloadable!] (restricted)
  12. Kahneman, Daniel, 1992. "Reference points, anchors, norms, and mixed feelings," Organizational Behavior and Human Decision Processes, Elsevier, vol. 51(2), pages 296-312, March. [Downloadable!] (restricted)
  13. 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. [Downloadable!] (restricted)
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  14. Tversky, Amos & Kahneman, Daniel, 1991. "Loss Aversion in Riskless Choice: A Reference-Dependent Model," The Quarterly Journal of Economics, MIT Press, vol. 106(4), pages 1039-61, November. [Downloadable!] (restricted)
  15. George J. Stigler, 1961. "The Economics of Information," Journal of Political Economy, University of Chicago Press, vol. 69, pages 213. [Downloadable!] (restricted)
  16. Vanwechel, Tamara & Wachenheim, Cheryl J. & Schuck, Eric & 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. [Downloadable!]
  17. Urbany, Joel E, 1986. " An Experimental Examination of the Economics of Information," Journal of Consumer Research: An Interdisciplinary Quarterly, University of Chicago Press, vol. 13(2), pages 257-71, September.
  18. 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 and Blackwell Publishing Asia Pty Ltd., vol. 47(4), pages 501-518, December. [Downloadable!] (restricted)
  19. Punj, Girish N & Staelin, Richard, 1983. " A Model of Consumer Information Search Behavior for New Automobiles," Journal of Consumer Research: An Interdisciplinary Quarterly, University of Chicago Press, vol. 9(4), pages 366-80, March.
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