The Economics of GM Labeling and Implications for Trade

2017 ◽  
Vol 15 (1) ◽  
Author(s):  
Jill J. McCluskey ◽  
Jason Winfree
Keyword(s):  
Willingness To Pay ◽  
Risk Perceptions ◽  
Genetically Modified ◽  
Trade Agreement ◽  
Consumer Welfare ◽  
Food Labeling ◽  
Gm Food ◽  
Consumer Risk ◽  
The Impact

AbstractIn this article, we model the effects of both voluntary and mandatory genetically modified (GM) food labeling on profits and consumer welfare. The non-GM firms weakly benefit from having the option to voluntarily label their product and will increase their quantities produced if labeling makes their non-GM product more valuable to consumers relative to the increased costs of labeling. GM producers make lower profits when non-GM firms voluntarily label because of increase in non-GM firms production. Mandatory labeling can be a different scenario. Costs of mandatory labeling are borne by the GM producers, and the benefits are reaped by the non-GM producers as it differentiates their product. We also consider the possibility that consumers will view the mandatory GM labels as a warning, such as a mandatory health label on cigarettes. The combination of increased costs along with decreased willingness to pay could be damaging to GM producers. The level of consumer concern about consuming GM food greatly affects the impact of labeling policies. Coordination of policies for a trade agreement will have different effects depending on consumer risk perceptions in that country and the number of GM firms.

Designing enhanced labeling information to increase consumer willingness to pay for genetically modified foods

2020 ◽  
Vol 123 (1) ◽  
pp. 405-418
Author(s):  
Jintao Zhan ◽  
Yubei Ma ◽  
Pengcheng Deng ◽  
Yinqiu Li ◽  
Meng Xu ◽  
...  
Keyword(s):  
Willingness To Pay ◽  
Sample Size ◽  
Risk Perceptions ◽  
Consumer Preferences ◽  
Genetically Modified ◽  
Food Labeling ◽  
Consumer Group ◽  
Content Type ◽  
Gm Food ◽  
Gm Foods

PurposeThe regulations for qualitative genetically modified (GM) food labeling do not effectively eliminate the information asymmetries pertaining to the consumption of GM products. China's GM food labeling law requires the presentation of certain categories of GM products on GMO labels on packages. Such information is invaluable for understanding whether the disclosure of more information on GM foods can help alleviate information asymmetry while reducing consumer fear and risk perceptions of GM foods, and thus cause changes in their behaviors. The purpose of this paper is to explore the heterogeneity of consumer preferences for enhanced GM food labeling, how consumer preferences are influenced by labeling information, and how these preferences vary in different consumers.Design/methodology/approachBoth descriptive statistics and econometric techniques, including the multivariate ordered Probit model, were applied to a sample of 566 urban consumers in the Yangtze River Delta region of China. All respondents were divided into two groups: people who would definitely not buy GM foods before selecting enhanced labeling information (“consumer group 1”, sample size 282) and people who would definitely not object to buying GM foods before selecting enhanced labeling information (“consumer group 2”, sample size 274).FindingsThe findings suggest that urban consumers have a preference for different types of enhanced labeling information about GM foods, that such a preference significantly influences their willingness to pay for GM foods, that there exists a large difference in the preferences of different consumer groups, and that enhanced GM food labeling information has a greater impact on those consumers who would not accept GM foods.Originality/valueThis research identifies the GM information disclosures that most affect consumer preferences and how these preferences vary across different segments of consumers, which is a current gap in the literature. The study has demonstrated that enhanced labels of GM foods with diverse information would not alter a consumer's WTP for GM foods who does not perceive the value of information from the enhanced labels, but change positively consumers with uncertainty willingness to pay before disclosure.

scholarly journals The Chinese public’s awareness and attitudes toward genetically modified foods with different labeling

2019 ◽  
Vol 3 (1) ◽  
Author(s):  
Yawei Zhao ◽  
Haiyan Deng ◽  
Changxin Yu ◽  
Ruifa Hu
Keyword(s):  
Genetically Modified ◽  
Negative Attitude ◽  
Food Labeling ◽  
Public Confidence ◽  
Gm Food ◽  
Gm Foods ◽  
The Media ◽  
The Government ◽  
The Impact ◽  
Chinese Public

Abstracts This paper analyzes the awareness and attitudes of the Chinese public toward genetically modified (GM) foods with different types of labeling and evaluates the impact of public confidence in the government management of GM food labeling has on their attitude. From 2015 to 2016, we conducted a series of surveys to collect data from 1730 respondents, which included consumers, farmers, media, and local agricultural officials in agricultural departments. The results show ~60% of the Chinese public do not know that they usually consume or purchase GM products or products containing GM ingredients. Nearly 80% of the Chinese public are accepting foods labeled as not containing GM ingredients, 57% are accepting foods without labeling, and ~40% are accepting GM-labeled foods. The respondents with a lack of confidence in the government are less likely to embrace GM foods. Those that are more aware of GM products are more likely to accept GM labeled foods. The group having the most positive attitude toward GM-labeled foods is the media, followed by agricultural officials, while the group having the most negative attitude toward GM labeled foods is farmers. Our findings provide an empirical basis to inform GM food labeling policy discussions and possible revisions, which may promote the development of GM foods in China.

Correcting Misperceptions About Genetically Modified Food on Social Media: Examining the Impact of Experts, Social Media Heuristics, and the Gateway Belief Model

2020 ◽  
pp. 107554702098137
Author(s):  
Leticia Bode ◽  
Emily K. Vraga ◽  
Melissa Tully
Keyword(s):  
Social Media ◽  
Food Safety ◽  
Genetically Modified ◽  
Human Consumption ◽  
Genetically Modified Food ◽  
The Public ◽  
Scientific Consensus ◽  
Gm Food ◽  
Belief Model ◽  
The Impact

We experimentally test whether expert organizations on social media can correct misperceptions of the scientific consensus on the safety of genetically modified (GM) food for human consumption, as well as what role social media cues, in the form of “likes,” play in that process. We find expert organizations highlighting scientific consensus on GM food safety reduces consensus misperceptions among the public, leading to lower GM misperceptions and boosting related consumption behaviors in line with the gateway belief model. Expert organizations’ credibility may increase as a result of correction, but popularity cues do not seem to affect misperceptions or credibility.

scholarly journals Labeling of genetically modified food: Closer to reality in the United States?

2013 ◽  
Vol 32 (1) ◽  
pp. 73-84 ◽  
Author(s):  
Anton E. Wohlers
Keyword(s):  
United States ◽  
Genetically Modified ◽  
The United States ◽  
Food Labeling ◽  
Genetically Modified Food ◽  
Policy Debate ◽  
Gm Food ◽  
Regulatory Changes ◽  
Gm Animals ◽  
Near Future

Within the broader context of several related biotech developments, including the proliferation of GM food in American grocery stories, the recent decision by Whole Foods Market, Inc. to require the labeling of all genetically modified (GM) organism products sold in its stores by 2018, and the development of GM animals for consumption, this essay asks whether the United States is inching towards a policy of mandatory GM food labeling. The analysis highlights aspects of the biotechnology policy debate in the United States and European Union, and traces public opinion as well as grassroots and legislative efforts aimed at GM food labeling. Findings show that activities at the federal level do not suggest any major regulatory changes regarding labeling in the near future; however, a growing number of individual states are considering GM food labeling legislation and political momentum in favor of labeling has picked up in recent years. Voluntary labeling by food companies may also become increasingly common.

scholarly journals Consumer Response to Genetically Modified Food Products in Japan

2003 ◽  
Vol 32 (2) ◽  
pp. 222-231 ◽  
Author(s):  
Jill J. McCluskey ◽  
Kristine M. Grimsrud ◽  
Hiromi Ouchi ◽  
Thomas I. Wahl
Keyword(s):  
Risk Perceptions ◽  
Contingent Valuation Method ◽  
Genetically Modified ◽  
Food Products ◽  
Export Market ◽  
Genetically Modified Food ◽  
Gm Food ◽  
Valuation Method ◽  
Perceptions And Attitudes ◽  
Education Levels

In Japan, a large U.S. export market, there has been growing public opposition against genetically modified (GM) foods. Using a dichotomous choice contingent valuation method, findings show the discount needed for Japanese Seikyou consumers to purchase GM food products is positively affected (i.e., a greater discount is required) by higher levels of self-reported risk perceptions toward GM food, higher levels of concern about food safety and the environment, higher self-reported knowledge about biotechnology, education levels, and income. Interestingly, gender does not significantly affect the discount needed for GM food. Further, it can be inferred from the results that a transformation of Japanese consumers’ perceptions and attitudes is needed for GM food products to successfully enter the Japanese market.

Consumer welfare and GM food labeling: A simulation using an adjusted Kumaraswamy distribution

Food Policy ◽  
2013 ◽  
Vol 42 ◽  
pp. 58-70 ◽  
Author(s):  
Li Zhao ◽  
Haiying Gu ◽  
Chengyan Yue ◽  
David Ahlstrom
Keyword(s):  
Consumer Welfare ◽  
Food Labeling ◽  
Kumaraswamy Distribution ◽  
Gm Food

Why Consumers Don't see the Benefits of Genetically Modified Foods, and what Marketers can do about It

2018 ◽  
Vol 82 (5) ◽  
pp. 125-140 ◽  
Author(s):  
Sean T. Hingston ◽  
Theodore J. Noseworthy
Keyword(s):  
Laboratory Experiment ◽  
Genetically Modified ◽  
Purchase Intentions ◽  
Food Labeling ◽  
Perceived Benefits ◽  
Gm Food ◽  
Consumer Panel ◽  
Gm Foods ◽  
Online Consumer ◽  
Promotion Strategies

Evidence from four studies suggests that the moral opposition toward genetically modified (GM) foods impedes the perception of their benefits, and critically, marketers can circumvent this moral opposition by employing subtle cues to position these products as being “man-made.” Specifically, if consumers view the GM food as man-made, and if they understand why it was created, moral opposition to the product diminishes, and the GM food's perceived benefits increase, which subsequently increases purchase intentions for the product. This effect is replicated in the field (in both controlled and naturalistic settings), in a laboratory experiment, and with an online consumer panel. The results suggest that marketers can help consumers better consider all information when assessing the merits of GM foods by using packaging and promotion strategies to cue consumers to view the GM food for what it is (i.e., a man-made object created with intent). The findings have implications for the recent GM food labeling debate.

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