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Consumer Benefits of Labels and Bans on GM Foods—Choice Experiments with Swedish Consumers
Author(s) -
Carlsson Fredrik,
Frykblom Peter,
Lagerkvist Carl Johan
Publication year - 2007
Publication title -
american journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.949
H-Index - 111
eISSN - 1467-8276
pISSN - 0002-9092
DOI - 10.1111/j.1467-8276.2007.00969.x
Subject(s) - european union , genetically modified organism , externality , consumer choice , genetically modified food , food labeling , economics , production (economics) , member states , food products , willingness to pay , microbiology and biotechnology , business , food science , microeconomics , international trade , biology , biochemistry , gene
The European Union has been relatively cautious about using biotechnology in food production. A label regime combined with the right of individual member states to ban introduction of new genetically modified (GM) strains means that GM food products in effect are banned in many countries. We show how it is possible to empirically test whether a ban can be motivated by reference to potential negative externalities. This is followed up by results from a choice experiment. We cannot reject the hypothesis of equal WTP for a ban and a labeling scheme.