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Do Consumers Really Care about Genetically Modified (GM) Food Label? What Do We Know? What Else Should We Know?

  • Chen, Xi
  • Zhou, Bin
  • Zhong, Funing
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This paper employs household survey data to examine whether GM food labeling has an impact on consumers’ vegetable oil purchasing decision. Direct variables indicating consumers’ response to label regulation are employed to test labeling effect. We find that supermarket customers who concern GM label or GM material have respectively 4.1-7.5 percent and 9.8-12.3 percent lower probability of buying GM oil. Meanwhile, their probability of switching from GM oil to non-GM oil after labeling enforcement is higher by 10.5 percent and 12.7 percent respectively. The empirical results support our previous finding that in the short run the market share of GM oil decreased significantly by a small amount as a result of label enforcement. To capture a comprehensive picture of GM food labeling and the market trend in the long run, major concerns and needs for the future are discussed, including understanding the discrepancy between stated preferences and revealed preferences, influencing factors for aggregate market share incorporating other market channels, real decision body for food consumption, and other major marketing strategies.

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Article provided by Economics and Econometrics Society in its journal Journal of Economics and Econometrics.

Volume (Year): 53 (2010)
Issue (Month): 2 ()
Pages: 32-56

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Handle: RePEc:eei:journl:v:53:y:2010:i:2:p:32-56
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  1. d’Artis Kancs & Gerald Weber, 2001. "Modelling Agricultural Policies in the CEE Accession Countries," EERI Research Paper Series EERI_RP_2001_02, Economics and Econometrics Research Institute (EERI), Brussels.
  2. Artis Kancs, 2001. "Predicting European Enlargement Impacts: A Framework of Interregional General Equilibrium," Eastern European Economics, M.E. Sharpe, Inc., vol. 39(5), pages 31-63, September.
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  4. d’Artis Kancs, 2007. "Applied General Equilibrium Analysis of Renewable Energy Policies," EERI Research Paper Series EERI_RP_2007_02, Economics and Econometrics Research Institute (EERI), Brussels.
  5. Lin, William W. & Somwaru, Agapi & Tuan, Francis C. & Huang, Jikun & Bai, Junfei, 2005. "Consumers' Willingness to Pay for Biotech Foods in China," 2005 Annual meeting, July 24-27, Providence, RI 19569, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  6. D'Artis Kancs, 2005. "Efficiency of European Funds in the Accession Countries: The Case of Transport Infrastructure Investments in Latvia," Transportation Planning and Technology, Taylor & Francis Journals, vol. 28(4), pages 293-313, July.
  7. d’Artis Kancs, 2004. "Evaluation of Renewable Energy Policies," EERI Research Paper Series EERI_RP_2004_03, Economics and Econometrics Research Institute (EERI), Brussels.
  8. d’Artis Kancs, 2006. "The economic geography of labour migration: Competition, competitiveness and development," EERI Research Paper Series EERI_RP_2006_01, Economics and Econometrics Research Institute (EERI), Brussels.
  9. Lin, William W. & Somwaru, Agapi & Tuan, Francis C. & Huang, Jikun & Bai, Junfei, 2004. "Consumer Attitudes Toward Biotech Foods in China," 2004 Annual meeting, August 1-4, Denver, CO 20359, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  10. Jeffrey M. Wooldridge, 2001. "Econometric Analysis of Cross Section and Panel Data," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262232197, June.
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  12. Julda Kielyte, 2008. "Estimating Panel Data Models in the Presence of Endogeneity and Selection," Journal of Economics and Econometrics, Economics and Econometrics Society, vol. 51(2), pages 1-19.
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