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An Experimental Investigation of Willingness to Pay for Non-GM and Organic Food Products

Author

Listed:
  • Gifford, Katie
  • Bernard, John C.
  • Toensmeyer, Ulrich C.
  • Bacon, J. Richard

Abstract

The appearance and rapid adoption of genetically modified (GM) foods and the strong growth in organic foods are two of the major trends that have influenced the food system over the past several years. The purpose of this research was to determine consumer willingness to pay (WTP) for non-GM and organic foods relative to conventional foods and to see if WTP differences between the three categories vary between fresh and processed food products. Experimental auctions with 133 subjects from three states (Delaware, Maryland, and Pennsylvania) were conducted. Tobit models were run with the bids as functions of demographic and knowledge and attitude variables. Results suggest an untapped market exists for non-GM products at a substantial premium over conventional, yet less than organic. This segment may be difficult to identify though as attitude variables were more important explainers of bids than demographics.

Suggested Citation

  • Gifford, Katie & Bernard, John C. & Toensmeyer, Ulrich C. & Bacon, J. Richard, 2005. "An Experimental Investigation of Willingness to Pay for Non-GM and Organic Food Products," 2005 Annual meeting, July 24-27, Providence, RI 19385, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea05:19385
    DOI: 10.22004/ag.econ.19385
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    References listed on IDEAS

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    Cited by:

    1. Schreiner, Julia A., 2014. "Farmers’ Valuation of Incentives to Produce GMO-free Milk: A Discrete Choice Experiment," 2014 International European Forum, February 17-21, 2014, Innsbruck-Igls, Austria 199373, International European Forum on System Dynamics and Innovation in Food Networks.
    2. Costa-Font, Montserrat & Gil, José M. & Traill, W. Bruce, 2008. "Consumer acceptance, valuation of and attitudes towards genetically modified food: Review and implications for food policy," Food Policy, Elsevier, vol. 33(2), pages 99-111, April.
    3. Joseph Seong & Simone Valle de Souza & H. Christopher Peterson, 2023. "Seeds of Industry Sustainability: Consumer Attitudes towards Indoor Agriculture Benefits versus Its Advanced Technology," Sustainability, MDPI, vol. 15(3), pages 1-21, January.

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