A Conjoint/Logit Analysis of Consumers’ Responses to Genetically Modified Tofu in Taiwan

We use data collected from a consumer survey of face‐to‐face interviews to determine consumer demand for genetically modified (GM) tofu attributes in Taiwan. Conjoint analysis using logit models reveals that, on average, brand is the most important attribute in terms of influence on consumers’ preferences, followed by price, with GM content having the least influence. However, the analysis also reveals three distinct market segments for tofu. Apart from the largest segment (which reflects the average lack of concern about GM food), the remaining two segments are split according to their preference or antipathy towards GM tofu. This result suggests that GM labelling is helpful to Taiwanese tofu consumers.     

Risk,learning, and technology adoption

This article explores how decision makers learn and use information, with an application to the adoption of biotechnology in agriculture. The empirical analysis relies on experimental and survey data measuring risk preferences, learning processes, and the adoption of genetically modified (GM) seeds among U.S. grain farmers. While controlling for risk aversion, we link individual learning rules with the cognitive abilities of each decision maker and their actual GM adoption decisions. We find evidence that very few individuals are Bayesian learners, and that the population of farmers is quite heterogeneous in terms of learning rules. This suggests that Bayesian learning (as commonly assumed in the analysis of agricultural technology adoption) is not an appropriate characterization. In addition, we do not find a strong relationship between observed learning styles and the timing of GM seed adoption. To the extent that learning is a key part of the process of technology adoption, this suggests the presence of much unobserved heterogeneity in learning among farmers.     

Reaping What We Sow: Emerging Issues and Policy Implications of Agricultural Biotechnology

This essay assesses the U.S. government's role in managing rapid biotechnological change in agriculture. Many scientists hail recent agricultural biotechnology developments as steps toward solving the health, nutrition, and environmental problems that have plagued the world for decades. At the same time, some fear these biotechnological advances will leave a legacy of environmental threats, health problems, and ethical dilemmas for future generations. The impacts of these technologies on economies and the environment are unpredictable and government's role in regulating GM (genetically modified) technologies will need to be different than its functions in traditional agricultural policy. In this article, we consider current federal regulation of GM products, consumers' apprehensions about GM food, possible market failures due to agricultural biotechnology, and the policy significance of scientific uncertainty. We then suggest policy approaches that can address concerns about biotechnology and ensure that the potentially widespread public benefits from GM crop production are not ignored.     

Heterogeneous Consumer Preferences for Nanotechnology and Genetic‐modification Technology in Food Products

This study investigates heterogeneous consumer preferences for nanofood and genetically‐modified (GM) food and the associated benefits using the results of choice experiments with 1,117 US consumers. We employ a latent class logit model to capture the heterogeneity in consumer preferences by identifying consumer segments. Our results show that nano‐food evokes fewer negative reactions compared with GM food. We identify four consumer groups: ‘Price Oriented/Technology Adopters’, ‘Technology Averse’, ‘Benefit Oriented’, and ‘New Technology Rejecters’. Each consumer group has a distinctive demographic background, which generates deeper insights into the diversified public acceptance of nano‐food and GM food. Our results have policy implications for the adoption of new food technologies.     

Labelling Genetically Modified Food: Heterogeneous Consumer Preferences and the Value of Information

One facet of public debate associated with genetically modified (GM) food focuses on labelling policy for products derived from GM processes. This paper reports on the analysis of effects on consumers' choices of pre-packaged sliced bread under different GM food labelling policies. Substantial heterogeneity is found to exist among consumers' tastes for various bread attributes, including the presence/absence of GM ingredients in bread products. A simulation-based bias-adjusted measure is applied to estimate the value of information, as opposed to the value of the presence or absence of GM ingredients, revealed to consumers by different labelling procedures for the GM attribute. The information that is provided in a mandatory labelling context is considerably more valued by consumers than the information provided in a voluntary labelling context. In a final section, estimated consumer benefits from labelling policies are expressed in terms of average market prices for bread products, providing a measure of benefits against which potential cost increases that may be associated with labelling policies may be compared in the context of any future benefit–cost analysis of GM labelling.     

Global Capitalism and the Nation State in the Struggles over GM Crops in Brazil

The introduction of biotechnology is part of a global process of structural change in agriculture characterized by an increased integration of world agriculture with high corporate control. However, as the legal competence to allow the planting and trade of genetically modified (GM) crops commonly lies at the level of the nation state, this remains strategic in the politics of GM crops, both for actors promoting the technology and for social movements struggling against it. This paper illustrates this argument with an analysis of the struggles over GM crops in Brazil. It shows how the implementation of a food regime based on biotechnology, corporate control and neoliberal globalism depended on the state and was a contested process.     

Consumer Attitudes to Genetically Modified Food in Norway

There is a lack of public acceptance of genetically modified (GM) food products in Europe. Using a dichotomous choice contingent valuation methodology, we find that, on average, survey respondents with a positive attitude toward the use of biotechnology in food production, higher educated, younger, and male need less of a discount to choose to purchase bread made with GM wheat. Further, we estimate confidence intervals for the mean discount required for consumers to choose GM bread. The 95% confidence interval for the mean discount required for the respondents to choose the GM bread is a 37% to 63% discount relative to conventional bread.     

Consumer Attitudes Towards GM Food

Abstract

To communicate effectively with consumers about genetically modified (GM) food, gaining insight in the formation of consumer attitude regarding GM food is essential. Therefore, the current paper first reviews relevant literature describing how consumer attitudes towards GM food are formed. Next, Structural Equation Modelling (SEM) is applied to own quantitative data to model the formation of consumer attitude towards GM food. Previous analysis of these quantitative data led to the identification and characterisation of four consumer segments (Halfhearted, Green Opponents, Balancers and Enthusiasts) based on beliefs and attitudes towards GM food. Based on the SEM results, recommendations are formulated for each of the four identified consumer segments.     

Comparative Advantage in Demand: Experimental Evidence of Preferences for Genetically Modified Food in the United States and European Union

The United States (US) exports more than US$6 billion in agricultural commodities to the European Union(EU) each year, but one issue carries the potential to diminish this trade: use of biotechnology in food production. The EU has adopted more stringent policies towards biotechnology than the US. Understanding differences in European and American policies towards genetically modified (GM) foods requires a greater understanding of consumers’ attitudes and preferences. This paper reports results from the first large‐scale, cross‐Atlantic study to analyse consumer demand for genetically modified food in a non‐hypothetical market environment. We strongly reject the frequent if convenient assumption in trade theory that consumer preferences are identical across countries: the median level of compensation demanded by English and French consumers to consume a GM food is found to be more than twice that in any of the US locations. Results have important implications for trade theory, which typically focuses on differences in specialization, comparative advantage and factor endowments across countries, and for on‐going trade disputes at the World Trade Organization.     

Farm Size Growth and Participation in Agri‐environmental Schemes: A Configural Frequency Analysis of the Swiss Case

This paper examines the relationship between farm growth and participation in agri‐environmental schemes, using the example of meadow extensification schemes in Switzerland. As a result of small farm sizes in Swiss agriculture, theory would suggest that economies of scale are considerable for market production activities, so that for growing farms it would be rational to intensify. Configural frequency analysis is used to identify and describe combinations of farm size development and proportion of meadows placed under agri‐environmental schemes. In the Swiss case, growing farms are likely to reduce their participation, whereas shrinking farms have a growing share of their meadows under extensification schemes.     

Is Bt Cotton a Pro‐Poor Technology? A Review and Critique of the Empirical Record

Policy makers, journalists and other commentators have hailed genetically modified (GM) crops as a ‘pro‐poor’ success in the developing world. Their confidence appears to be justified by the encouraging conclusions reached by academic studies on the performance and impacts of GM crops, which seem to provide convincing evidence of substantial benefits for smallholders in developing countries. However, a detailed, critical examination of studies on transgenic, insect‐resistant cotton in China, India and South Africa demonstrates that the technology's impacts have been evaluated and represented in selective and misleading ways. The performance and impacts of GM crops have in fact been highly variable, socio‐economically differentiated and contingent on a range of agronomic, socio‐economic and institutional factors. The shortcomings of the GM crop‐impacts literature have done a disservice to public and policy debates about GM crops in international development and impeded the development of sound, evidence‐based policy.     

Risk Perceptions, Risk Preference, and Acceptance of Risky Food

Consumers' risk preferences are often overlooked in studies of consumer demand for risky food. We find that risk preferences elicited through context-less lottery choices are significantly related to consumers' stated preferences for genetically modified (GM) food. These results suggest risk preferences elicited in the laboratory are not artificial in the sense that they appear to be related to the same risk preferences that govern other individual decisions such as food choice. Consistent with theoretical expectations, risk perceptions and risk preferences were found to be significant determinants of acceptance of GM food, which has important implications for explaining consumer behavior.     

On the Segregation of Genetically Modified,Conventional and Organic Products in European Agriculture: A Multi‐market Equilibrium Analysis

Evaluating the possible benefits of the introduction of genetically modified (GM) crops must address the issue of consumer resistance as well as the complex regulation that has ensued. In the European Union (EU), this regulation envisions the co‐existence of GM food with conventional and quality‐enhanced products, mandates the labelling and traceability of GM products and allows only a stringent adventitious presence of GM content in other products. All these elements are brought together within a partial equilibrium model of the EU agricultural food sector. The model comprises conventional, GM and organic food. Demand is modelled in a novel fashion, whereby organic and conventional products are treated as horizontally differentiated but GM products are vertically differentiated (weakly inferior) relative to conventional ones. Supply accounts explicitly for the land constraint at the sector level and for the need for additional resources to produce organic food. Model calibration and simulation allow insights into the qualitative and quantitative effects of the large‐scale introduction of GM products in the EU market. We find that the introduction of GM food reduces overall EU welfare, mostly because of the associated need for costly segregation of non‐GM products, but the producers of quality‐enhanced products actually benefit.     

Consumer willingness to pay for genetically modified food in Kenya

Genetically modified (GM) crops are popular in many regions of the world, but their deployment in Africa is hindered by safety concerns and regulatory issues, although the continent is in dire need of boosting its food production. Although consumers' acceptance of GM food has been analyzed in many continents, no such studies have been conducted in Africa. Therefore, a survey of 604 consumers was conducted in Nairobi, Kenya, in 2003, to gauge consumers' awareness of GM crops, their willingness to pay (WTP) for GM food, and the factors that influence their WTP. Consumers' knowledge of GM crops was limited and only 38% of the 604 respondents were aware of GM crops. People in higher education and income groups were more aware than others. Regardless, people were generally appreciative of the technology, and a large majority (68%) would be willing to buy GM maize meal at the same price as their favorite brand. Consumers were, however, concerned about possible side effects, especially on the environment and biodiversity. WTP was estimated using a double‐bounded dichotomous choice model, and the mean WTP was found to be 13.8% higher than the average price of non‐GM maize meal. Perceptions of health risk, and ethical and equity concerns had a negative influence on the likelihood of purchasing GM maize meal, whereas trust in government to ensure food quality had a positive influence on WTP. People with at least some secondary education and those in the high‐income category were more likely to purchase GM maize meal at the same price. The study concludes that, because awareness is still low, appropriate communications are needed to involve the consumer in the debate. Consumers' acceptance in this study was high, but the research needs to be expanded to rural areas, where most consumers live, and other survey methods need to be explored.     

Do Local Landscape Patterns Affect the Demand for Landscape Amenities Protection?

Agricultural support is increasingly flowing into the maintenance and improvement of landscape quality. While variations in the demand for landscape protection have been successfully attributed to variations in socio‐economic characteristics, the effect of the local landscape setting as a potential determinant of environmental preferences has received less attention. A framework is formulated that describes public support for regional landscape protection as a function of socio‐economic variables and land use patterns. Models are then estimated using detailed local land use statistics and voting records from a referendum on increasing public funding for local landscape amenities protection in the Swiss canton of Zurich. The land use variables represent proportions of open landscape and landscape features that are viewed as particularly valuable for aesthetic and other reasons. Cross‐sectional estimation results suggest that attitudes towards public landscape protection are indeed strongly associated with the local landscape. Approval for protection programmes increased with local scarcity of open space and with the presence of high‐amenity landscape features. Comparison with referendum outcomes on a national‐level environmental issue suggests that the positive association with high‐amenity landscape features may be partly attributable to individuals' self‐selection of residency.     

A latent class approach to investigating demand for genetically modified banana in Uganda

This study explores consumer acceptance and valuation of a genetically modified (GM) staple food crop in a developing country prior to its commercialization. We focus on the hypothetical introduction of a disease‐resistant GM banana variety in Uganda, where bananas are among the most important staple crops. A choice experiment is used to investigate consumer preferences for various attributes related to the banana (such as bunch size, technology, producer benefit, and price) and examine their opinions on GM foodstuff. Choice data come from 421 banana‐consuming households randomly selected from three regions of Uganda. A latent class model is used to investigate the heterogeneity in consumers’ preferences for selected attributes related to the banana and to profile consumers who are more or less likely to accept GM bananas. Our results reveal that there is significant heterogeneity in consumer preferences across our sample. GM bananas are valued the most by poorer households located in the rural areas of the Eastern region. These food‐insecure households would experience the highest benefits (i.e., welfare gains) from the commercial release of GM bananas. In contrast, urban consumers are less accepting of GM bananas, and they would experience significant welfare losses if GM banana is released. According to our welfare estimates, both the total welfare benefits acquired by the gainers and the total welfare losses borne by the losers of this technology are significant and large. These results suggest the need for further investigation of the overall welfare effects of the introduction of GM bananas on the Ugandan society as a whole.     

Inter‐ and intra‐seasonal crop acreage response to international food prices and implications of volatility

Understanding how producers make decisions to allot acreage among crops and how decisions about land use are affected by changes in prices and their volatility is fundamental for predicting the supply of staple crops and, hence, assessing the global food supply situation. This study makes estimations of monthly (i.e., seasonal) versus annual global acreage response models for the world's principal staple food crops: wheat, corn, soybeans, and rice. Primary emphasis is given to the magnitude and speed of the allocation process. Estimation of intra‐annual acreage elasticity is crucial for expected food supply and for input demand, especially in the light of the recent short‐term volatility in food prices. The econometric results indicate that global crop acreage responds to crop prices and price risks, input costs as well as a time trend. Depending on respective crop, short‐run elasticities are about 0.05 to 0.40; price volatility tends to reduce acreage for some of the crops; comparison of the annual and the monthly acreage response elasticities suggests that acreage adjusts seasonally around the globe to new information and expectations. Given the seasonality of agriculture, time is of an essence for acreage response. The analysis indicates that acreage allocation is more sensitive to prices in the northern hemisphere spring than in winter and the response varies across months.     

Consumer Acceptance of Second‐Generation GM Foods: The Case of Biofortified Cassava in the North‐east of Brazil

Biofortified staple foods are currently being developed to reduce problems of micronutrient malnutrition among the poor. This partly involves use of genetic modification. Yet, relatively little is known about consumer acceptance of such second‐generation genetically modified (GM) foods in developing countries. Here, we analyse consumer attitudes towards provitamin A GM cassava in the north‐east of Brazil. Based on stated preference data, mean willingness to pay is estimated at 60–70% above market prices for traditional cassava. This is higher than the results from similar studies in developed countries, which is plausible given that micronutrient malnutrition is more severe in developing countries. GM foods with enhanced nutritive attributes seem to be well received by poor consumers. However, the results also suggest that acceptance would be still higher if provitamin A were introduced to cassava through conventional breeding. Some policy implications are discussed.     

Consumer preferences for GM food and other attributes of the food system

While qualitative surveys regarding consumers' attitudes about gene technologies and their application to food production are plentiful, quantitative studies are less so. The present paper reports choice modelling methods to examine the conditions under which Australian consumers are willing to purchase genetically modified (GM) foods, if at all, and examines those preferences within the context of the food system as a whole. This allows us to compare consumer attitudes towards gene technology to consumer preferences for other features of the food they consume. The results of the choice modelling analysis suggest consumers require a discount on their weekly food bill before they will purchase GM food. Gene technology using animal as well as plant genes was found to be more objectionable to respondents than that using plant genes alone, especially among women. Age seems to affect the preferences for a certain type of food, with older people generally more accepting of the use of gene technology.     

Mandatory versus voluntary labelling of genetically modified food: evidence from an economic experiment

Opponents of the voluntary labelling scheme for genetically modified (GM) food products often argue that consumers have the “right to know” and therefore advocate mandatory labelling. In this article, we argue against this line of reasoning. Using experimental auctions we show that the quality of the signal generated by a mandatory labelling scheme is affected by the number of labels in the market. If there are two labels, one for GM products and one for non‐GM products, mandatory and voluntary labelling schemes generate a similar degree of uncertainty about the quality of products that do not carry a label.