Effects of Information on Consumers' Willingness to Pay for GM-Corn-Fed Beef

Journal of Agricultural & Food Industrial Organization 02/2007; 2(2):1058-1058. DOI: 10.2202/1542-0485.1058
Source: RePEc

ABSTRACT There has been growing public opposition against genetically modified (GM) foods. Using a dichotomous choice contingent valuation methodology, we analyze the factors that affect the willingness to pay for GM-corn-fed beef by consumers in Spokane, Washington. The mean discount required to choose the GM-fed beef is small at 8% compared to other studies in Europe and Japan. Further, half the sample was provided information about biotechnology, and the effect of this information is analyzed.

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    ABSTRACT: Abstract: This study conducts a multi-country survey on consumer acceptance of genetically modified (GM) foods in the United States and Taiwan and an experimental auction in Japan to estimate consumers' willingness to pay a premium for non-GM foods and/or their willingness to accept a discount on GM foods. The first essay reports results from a U.S. national telephone survey. The survey questionnaire involves stated preference (SP) questions of vegetable oil, cornflakes, and salmon. American consumers are generally accepting of GM foods. Among the determinants of choice, subjective variables such as perception of benefits and risks and level of knowledge are important. The estimated mean non-GM premiums are, respectively, 44.5%, 35.7%, 38.1%, and 56.9% of the base price to avoid GM vegetable oil, GM cornflakes, GM-fed salmon, and GM salmon. The SP question takes account of indifferent respondents. The second essay is based on the Taiwanese telephone survey. Taiwanese consumers indicate positive attitudes toward GM foods as compared to American consumers. The mean non-GM premium and the mean GM discount are estimated, and the equality between the two mean values is tested. We find no evidence against the equality, which indicates that Taiwanese consumers consider non-GM and GM foods to be substitutable. We also examine the effect of initial non-GM/GM choice on the propensity to switch alternatives given the price increase or discount. We find that the willingness to switch is different between the non-GM and GM choosers because the two groups have different choice criteria. The third essay studies Japanese consumers' willingness to pay a premium for non-GM foods based on the experimental auctions. We find that Japanese consumers are not too opposed to GM foods, and the estimated GM discounts are 37% for canola oil and 44% for natto (a soy product), which indicates that Japanese consumers are willing to accept GM foods if they are sufficiently discounted. We test the equality between the mean willingness to accept from the experiment and that from a stated preference question but find no evidence against the equality to conclude that hypothetical bias does not always exist. Title from first page of PDF file. Document formatted into pages; contains xiv, 168 p.; also includes graphics (some col.). Thesis (Ph. D.)--Ohio State University, 2005. Includes bibliographical references (p. 161-168). System requirements: World Wide Web browser and PDF viewer.
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    ABSTRACT: This paper presents a meta-analysis of 46 primary studies reporting a total of 108 genetically modified food valuation estimates. The analysis shows that elicitation methods and formats used in the primary studies affect valuation estimates much more than do sample characteristics. Moreover, consumer aversion to genetically modified food seems to have increased over time. Previous findings are confirmed that consumer valuation strongly depends on the type of food product and varies among regions. --
    ZEW - Zentrum f�r Europ�ische Wirtschaftsforschung / Center for European Economic Research, ZEW Discussion Papers. 01/2008;
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    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.

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May 17, 2014