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U.S. Consumers' Willingness to Pay for Labeling Information on Genetically Modified Foods: An Application of Choice Modeling

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

Abstract

This study analyzes U.S. consumers' valuation of five types of genetically modified food labels on a cornflakes cereal product. Using a nationwide survey and choice-modeling framework, results indicate that consumers value the label "contains no genetically modified corn" the most with a mean willingness to pay of 20 more cents, followed by "USDA approved genetically modified corn" with a mean willingness to pay of 9 more cents, and "corn genetically modified to reduce pesticide residues in your food" with a mean willingness to pay of 7 more cents. Results also suggest that consumers negatively value the labels "contains genetically modified corn" with a mean willingness to pay of 13 less cents and "may contain genetically modified corn" with a mean willingness to pay of 2 less cents.

Suggested Citation

  • Onyango, Benjamin M. & Nayga, Rodolfo M., Jr. & Govindasamy, Ramu, 2005. "U.S. Consumers' Willingness to Pay for Labeling Information on Genetically Modified Foods: An Application of Choice Modeling," 2005 Annual meeting, July 24-27, Providence, RI 19490, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea05:19490
    DOI: 10.22004/ag.econ.19490
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    References listed on IDEAS

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    Cited by:

    1. Byeong-il Ahn & Mo-Se Bae & Rodolfo M. Nayga Jr., 2016. "Information Effects on Consumers' Preferences and Willingness to Pay for a Functional Food Product: The Case of Red Ginseng Concentrate," Asian Economic Journal, East Asian Economic Association, vol. 30(2), pages 197-219, June.

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