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

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  • Chen, Xi
  • Zhou, Bin
  • Zhong, Funing

Abstract

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.

Suggested Citation

  • Chen, Xi & Zhou, Bin & Zhong, Funing, 2010. "Do Consumers Really Care about Genetically Modified (GM) Food Label? What Do We Know? What Else Should We Know?," Journal of Economics and Econometrics, Economics and Econometrics Society, vol. 53(2), pages 32-56.
  • Handle: RePEc:eei:journl:v:53:y:2010:i:2:p:32-56
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    References listed on IDEAS

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    Cited by:

    1. Pavel Ciaian & Sergio Gomez y Paloma, 2011. "Valuation of EU Agricultural Landscape," EERI Research Paper Series EERI_RP_2011_20, Economics and Econometrics Research Institute (EERI), Brussels.
    2. James Anderson, 2001. "Migration, FDI, and the Margins of Trade," EERI Research Paper Series EERI_RP_2001_05, Economics and Econometrics Research Institute (EERI), Brussels.

    More about this item

    Keywords

    GM food labeling; household survey data; aggregate market share; China.;

    JEL classification:

    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy

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