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U.S. Consumers' Willingness to Pay for Food Labeled ‘Genetically Modified’

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  • Onyango, Benjamin
  • Nayga, Rodolfo M.
  • Govindasamy, Ramu

Abstract

This study analyzes U. S. consumers' choice of cornflakes under five different labeling statements. Using a nationwide survey and choice modeling framework, results indicate that consumers value labeling statements differently, depending on the information contained on the label. The random parameter logit model results indicated that, compared to cornflakes that have no label information, cornflakes labeled “contains no genetically modified com” have a value of 10 percent more, the label “USDA approved genetically modified com” has a value of 5 percent more, and the label “com genetically modified to reduce pesticide residues in your food” has a value of 5 percent more. The results also suggest that consumers negatively valued the label “contains genetically modified com,” paying 6.5 percent less, and the label “may contain genetically modified com,” paying 1 percent less than the product that has no label information.

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  • Onyango, Benjamin & Nayga, Rodolfo M. & Govindasamy, Ramu, 2006. "U.S. Consumers' Willingness to Pay for Food Labeled ‘Genetically Modified’," Agricultural and Resource Economics Review, Cambridge University Press, vol. 35(2), pages 299-310, October.
    • Handle: RePEc:cup:agrerw:v:35:y:2006:i:02:p:299-310_00
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    1. Li, Ji & Hooker, Neal H., 2009. "Documenting Food Safety Claims and Their Influence on Product Prices," Agricultural and Resource Economics Review, Cambridge University Press, vol. 38(3), pages 311-323, December.
    2. 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.
    3. Yulian Ding & Michele M. Veeman & Wiktor L. Adamowicz, 2012. "The influence of attribute cutoffs on consumers' choices of a functional food," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 39(5), pages 745-769, December.
    4. 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.
    5. Simon Chege Kimenju & Hugo De Groote, 2008. "Consumer willingness to pay for genetically modified food in Kenya," Agricultural Economics, International Association of Agricultural Economists, vol. 38(1), pages 35-46, January.
    6. Kolodinsky, Jane, 2008. "Affect or information? Labeling policy and consumer valuation of rBST free and organic characteristics of milk," Food Policy, Elsevier, vol. 33(6), pages 616-623, December.

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