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Consumer Preferences for Genetically Modified Organisms in Cape Town: A Choice Experiment Approach

Author

Listed:
  • Benjamin Dovey

    (University of Cape Town)

  • Herbert Ntuli

    (University of Cape Town)

Abstract

This paper reports a study done on Cape Town consumers, with the aim to understand how their purchasing decisions are shaped with respect to GMOs. A choice experiment approach was used to examine consumer preferences for biotechnology products in the food market. Four models were run to analyse the data, i.e., the conditional logit and random parameters logit models, with and without iteration terms. The results revealed a large status quo bias, indicating that the majority of consumers were reluctant to consume foods that incorporated certain technologies in their production process. The paper concludes by stating that producers need to align the development of GMOs to better meet consumers desires rather than suppliers. Finally, the paper takes an understanding that to increase the acceptance of GMOs, a larger portion of the population needs to be educated better about this technology.

Suggested Citation

  • Benjamin Dovey & Herbert Ntuli, 2020. "Consumer Preferences for Genetically Modified Organisms in Cape Town: A Choice Experiment Approach," ERSA Working Paper Series 102, Economic Research Southern Africa.
  • Handle: RePEc:rza:ersawp:102
    as

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    References listed on IDEAS

    as
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    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • I25 - Health, Education, and Welfare - - Education - - - Education and Economic Development
    • I26 - Health, Education, and Welfare - - Education - - - Returns to Education
    • P46 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Consumer Economics; Health; Education and Training; Welfare, Income, Wealth, and Poverty
    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation

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