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U.S. Consumers' Willingness to Pay for Food Labeled ‘Genetically Modified’

Published online by Cambridge University Press:  15 September 2016

Benjamin Onyango
Affiliation:
Food Policy Institute at Rutgers University, New Brunswick, New Jersey
Rodolfo M. Nayga Jr.
Affiliation:
Department of Agricultural Economics at Texas A&M University, College Station, Texas
Ramu Govindasamy
Affiliation:
Department of Agricultural, Food, and Resource Economics at Rutgers University, New Brunswick, New Jersey
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Abstract

This study analyzes U. S. consumers' choice of cornflakes under five different labeling statements. Using a nationwide survey and choice modeling framework, results indicate that consumers value labeling statements differently, depending on the information contained on the label. The random parameter logit model results indicated that, compared to cornflakes that have no label information, cornflakes labeled “contains no genetically modified com” have a value of 10 percent more, the label “USDA approved genetically modified com” has a value of 5 percent more, and the label “com genetically modified to reduce pesticide residues in your food” has a value of 5 percent more. The results also suggest that consumers negatively valued the label “contains genetically modified com,” paying 6.5 percent less, and the label “may contain genetically modified com,” paying 1 percent less than the product that has no label information.

Type
Contributed Papers
Copyright
Copyright © 2006 Northeastern Agricultural and Resource Economics Association 

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