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Differentiating the consumer benefits from labeling of GM food products

Author

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  • Sara Scatasta
  • Justus Wesseler
  • Jill Hobbs

Abstract

Although recurrent evidence is found that consumers have different willingness to pay for GM and non‐GM products, there is disagreement in the scientific community about the size of consumer benefits from GM labeling. In this article we use a theoretical model based on a standard constant elasticity of substitution (CES) to explain the importance of the quality effect. It is shown that failing to consider the quality effect may yield an overestimation of benefits from GM labeling, voluntary or mandatory.

Suggested Citation

  • 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.
    • Handle: RePEc:bla:agecon:v:37:y:2007:i:2-3:p:237-242
    DOI: 10.1111/j.1574-0862.2007.00269.x
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    Cited by:

    1. Philipp Aerni, 2011. "Do Political Attitudes Affect Consumer Choice? Evidence from a Large-Scale Field Study with Genetically Modified Bread in Switzerland," Sustainability, MDPI, vol. 3(9), pages 1-18, September.
    2. Groeneveld, Rolf A. & Wesseler, Justus & Berentsen, Paul B.M., 2013. "Dominos in the dairy: An analysis of transgenic maize in Dutch dairy farming," Ecological Economics, Elsevier, vol. 86(C), pages 107-116.
    3. Astrid Dannenberg & Sara Scatasta & Bodo Sturm, 2009. "Keine Chance für genetisch veränderte Lebensmittel in Deutschland? Eine experimentelle Analyse von Zahlungsbereitschaften," Perspektiven der Wirtschaftspolitik, Verein für Socialpolitik, vol. 10(2), pages 214-234, May.
    4. Wesseler, Justus, 2014. "Biotechnologies and agrifood strategies: opportunities, threats and economic implications," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), vol. 3(3), pages 1-18, December.
    5. Guillaume P. Gruère & Colin A. Carter & Y. Hossein Farzin, 2009. "Explaining International Differences in Genetically Modified Food Labeling Policies," Review of International Economics, Wiley Blackwell, vol. 17(3), pages 393-408, August.

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