Consumption effects of genetic modification: what if consumers are right?

This paper develops a model of differentiated consumers to examine the consumption effects of genetic modification (GM) under alternative labeling regimes and segregation enforcement scenarios. Analytical results show that if consumers perceive GM products as being different than their traditional c...

Descripción completa

Detalles Bibliográficos
Autores principales: Giannakas, Konstantinos, Fulton, Murray
Formato: Artículo preliminar
Lenguaje:Inglés
Publicado: International Food Policy Research Institute 2000
Materias:
Acceso en línea:https://hdl.handle.net/10568/155695
_version_ 1855513076830306304
author Giannakas, Konstantinos
Fulton, Murray
author_browse Fulton, Murray
Giannakas, Konstantinos
author_facet Giannakas, Konstantinos
Fulton, Murray
author_sort Giannakas, Konstantinos
collection Repository of Agricultural Research Outputs (CGSpace)
description This paper develops a model of differentiated consumers to examine the consumption effects of genetic modification (GM) under alternative labeling regimes and segregation enforcement scenarios. Analytical results show that if consumers perceive GM products as being different than their traditional counterparts, genetic modification affects consumer welfare and, thus, consumption decisions. When the existence of market imperfections in one or more stages of the supply chain prevents the transmission of cost savings associated with the new technology to consumers, genetic modification results in welfare losses for consumers. The analysis shows that the relative welfare ranking of the “no labeling” and “mandatory labeling” regimes depends on: (i) the level of consumer aversion to genetic modification, (ii) the size of marketing and segregation costs under mandatory labeling; (iii) the share of the GM product to total production; and (iv) the extent to which GM products are incorrectly labeled as non-GM products.
format Artículo preliminar
id CGSpace155695
institution CGIAR Consortium
language Inglés
publishDate 2000
publishDateRange 2000
publishDateSort 2000
publisher International Food Policy Research Institute
publisherStr International Food Policy Research Institute
record_format dspace
spelling CGSpace1556952025-11-06T05:00:49Z Consumption effects of genetic modification: what if consumers are right? Giannakas, Konstantinos Fulton, Murray consumers genetically modified organisms economic aspects foods consumption This paper develops a model of differentiated consumers to examine the consumption effects of genetic modification (GM) under alternative labeling regimes and segregation enforcement scenarios. Analytical results show that if consumers perceive GM products as being different than their traditional counterparts, genetic modification affects consumer welfare and, thus, consumption decisions. When the existence of market imperfections in one or more stages of the supply chain prevents the transmission of cost savings associated with the new technology to consumers, genetic modification results in welfare losses for consumers. The analysis shows that the relative welfare ranking of the “no labeling” and “mandatory labeling” regimes depends on: (i) the level of consumer aversion to genetic modification, (ii) the size of marketing and segregation costs under mandatory labeling; (iii) the share of the GM product to total production; and (iv) the extent to which GM products are incorrectly labeled as non-GM products. 2000 2024-10-24T12:42:26Z 2024-10-24T12:42:26Z Working Paper https://hdl.handle.net/10568/155695 en Open Access application/pdf International Food Policy Research Institute Giannakas, Konstantinos; Fulton, Murray. 2000. Consumption effects of genetic modification: what if consumers are right? EPTD Discussion Paper 69. https://hdl.handle.net/10568/155695
spellingShingle consumers
genetically modified organisms
economic aspects
foods
consumption
Giannakas, Konstantinos
Fulton, Murray
Consumption effects of genetic modification: what if consumers are right?
title Consumption effects of genetic modification: what if consumers are right?
title_full Consumption effects of genetic modification: what if consumers are right?
title_fullStr Consumption effects of genetic modification: what if consumers are right?
title_full_unstemmed Consumption effects of genetic modification: what if consumers are right?
title_short Consumption effects of genetic modification: what if consumers are right?
title_sort consumption effects of genetic modification what if consumers are right
topic consumers
genetically modified organisms
economic aspects
foods
consumption
url https://hdl.handle.net/10568/155695
work_keys_str_mv AT giannakaskonstantinos consumptioneffectsofgeneticmodificationwhatifconsumersareright
AT fultonmurray consumptioneffectsofgeneticmodificationwhatifconsumersareright