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Consumer benefits of labels and bans on genetically modified food - An empirical analysis using Choice Experiments

Author

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  • Carlsson, Fredrik

    (Department of Economics, School of Economics and Commercial Law, Göteborg University)

  • Frykblom, Peter

    (Department of Economics, Appalachian State University)

  • Lagerkvist, Carl-Johan

    (Swedish University of Agricultural Sciences)

Abstract

Applying an experiment on the choice of consumer goods, we show that Swedish consumers do not regard genetically modified (GM) food as being equivalent to conventional food. A central argument by proponents of GM is that the end products are identical to those where GM has not been used. That respondents in our survey disagree with this argument is supported by two observations. First, a positive significant WTP is found for a mandatory labeling policy. This result confirms previous observations that GM food can be a credence good causing a market failure. Second, consumers are also willing to pay a significantly higher product price to ensure a total ban on the use of GM in animal fodder. Even if scientists and politicians argue that most of today’s GM food is indistinguishable from GM-free food,consumers disagree.´

Suggested Citation

  • Carlsson, Fredrik & Frykblom, Peter & Lagerkvist, Carl-Johan, 2004. "Consumer benefits of labels and bans on genetically modified food - An empirical analysis using Choice Experiments," Working Papers in Economics 129, University of Gothenburg, Department of Economics.
  • Handle: RePEc:hhs:gunwpe:0129
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    File URL: http://hdl.handle.net/2077/2791
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    References listed on IDEAS

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    Cited by:

    1. Kontoleon Andreas & Yabe Mitsuyasu, 2006. "Market Segmentation Analysis of Preferences for GM Derived Animal Foods in the UK," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 4(1), pages 1-38, December.
    2. Caswell, Julie A. & Joseph, Siny, 2007. "Consumer Demand for Quality: Major Determinant for Agricultural and Food Trade in the Future?," Working Paper Series 7390, University of Massachusetts, Amherst, Department of Resource Economics.
    3. Owusu, Rebecca & Dadzie, Samuel Kwesi Ndzebah, 2021. "Heterogeneity in consumer preferences for organic and genetically modified food products in Ghana," African Journal of Agricultural and Resource Economics, African Association of Agricultural Economists, vol. 16(2), June.
    4. 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.
    5. 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.
    6. 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.
    7. Bett, Charles & Ouma, James Okuro & Groote, Hugo De, 2010. "Perspectives of gatekeepers in the Kenyan food industry towards genetically modified food," Food Policy, Elsevier, vol. 35(4), pages 332-340, August.
    8. 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.
    9. 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).

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    More about this item

    Keywords

    choice experiment; credence good; genetically modified; random parameters logit; public good;
    All these keywords.

    JEL classification:

    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
    • Q16 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - R&D; Agricultural Technology; Biofuels; Agricultural Extension Services
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy

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