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Should the United States Regulate Mandatory Labeling for Genetically Modified Foods?

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  • Huffman, Wallace
  • Rousu, Matthew
  • Shogren, Jason F.
  • Tegene, Abebayehu

Abstract

Public debate continues over whether the United States should regulate genetically modified (GM) foods by imposing a mandatory labeling policy. This paper develops a model that shows that a voluntary GM-labeling policy results in higher welfare than a regulated mandatory GM-labeling policy, if consumers can accurately read the signals in each market. We then develop an experiment that shows consumers behave as if they can accurately identify signals for GM foods. Our model and results support the perspective that the United States has been prudent in fending off calls for regulations demanding a mandatory GM-labeling policy.

Suggested Citation

  • Huffman, Wallace & Rousu, Matthew & Shogren, Jason F. & Tegene, Abebayehu, 2002. "Should the United States Regulate Mandatory Labeling for Genetically Modified Foods?," Staff General Research Papers Archive 10047, Iowa State University, Department of Economics.
    • Handle: RePEc:isu:genres:10047
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    Cited by:

    1. Sara Scatasta & Justus Wesseler & Jill Hobbs, 2007. "Differentiating the consumer benefits from labeling of GM food products," Agricultural Economics, International Association of Agricultural Economists, vol. 37(2‐3), pages 237-242, September.
    2. Hu, Wuyang & Adamowicz, Wiktor L. & Veeman, Michele M., 2004. "Decomposing Unobserved Choice Variability In The Presence Of Consumers' Taste Heterogeneity," 2004 Annual meeting, August 1-4, Denver, CO 19954, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    3. 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.
    4. Harrison, R. Wes & Han, Jae-Hwan, 2005. "The Effects of Urban Consumer Perceptions on Attitudes for Labeling of Genetically Modified Foods," Journal of Food Distribution Research, Food Distribution Research Society, vol. 36(2), pages 1-10, July.
    5. 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.
    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. Baker, Gregory A. & Mazzocco, Michael A., 2005. "Who Should Certify the Safety of Genetically Modified Foods?," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 8(2), pages 1-20.
    8. Marks, Leonie A. & Kalaitzandonakes, Nicholas G. & Vickner, Steven S., 2003. "Evaluating Consumer Response to GM Foods: Some Methodological Considerations," CAFRI: Current Agriculture, Food and Resource Issues, Canadian Agricultural Economics Society, issue 4, pages 1-15, November.
    9. 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.

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    Keywords

    genetically modified foods; laboratory auctions; vegetable oil; tortilla chips; russet potatoes; mandatory labeling; voluntary labeling; nth-price auction;
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