IDEAS home Printed from https://ideas.repec.org/a/bla/jageco/v69y2018i3p705-725.html
   My bibliography  Save this article

Consumer Demand for Genetically Modified Rice in Urban China

Author

Listed:
  • Zhihao Zheng
  • Shida R. Henneberry
  • Chuanzhong Sun
  • Rodolfo M. Nayga

Abstract

We investigate consumer demand for genetically modified (GM) rice in urban China, using a relatively large survey of urban consumers in 2013 and the contingent valuation method. Our results show that respondents discount their WTP for first, second and third generation of GM rice by 31%, 34% and 36%, respectively, compared with non‐GM rice, indicating substantial aversion to GM rice by Chinese consumers. The level of consumers’ subjective knowledge of GM rice has a significantly negative impact on their WTP for GM rice, implying that GM rice in China has become a ‘special food’ with an unreliable image.

Suggested Citation

  • Zhihao Zheng & Shida R. Henneberry & Chuanzhong Sun & Rodolfo M. Nayga, 2018. "Consumer Demand for Genetically Modified Rice in Urban China," Journal of Agricultural Economics, Wiley Blackwell, vol. 69(3), pages 705-725, September.
    • Handle: RePEc:bla:jageco:v:69:y:2018:i:3:p:705-725
    DOI: 10.1111/1477-9552.12264
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/1477-9552.12264
    Download Restriction: no
    File URL: https://libkey.io/10.1111/1477-9552.12264?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Huffman, Wallace E. & Rousu, Matthew & Shogren, Jason F. & Tegene, Abebayehu, 2007. "The effects of prior beliefs and learning on consumers' acceptance of genetically modified foods," Journal of Economic Behavior & Organization, Elsevier, vol. 63(1), pages 193-206, May.
    2. Dermot J. Hayes & Jason F. Shogren & Seung Youll Shin & James B. Kliebenstein, 1995. "Valuing Food Safety in Experimental Auction Markets," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 77(1), pages 40-53.
    3. Rousu, Matthew C. & Monchuk, Daniel C. & Shogren, Jason F. & Kosa, Katherine M., 2005. "Consumer Willingness to Pay for "Second-Generation" Genetically Engineered Products and the Role of Marketing Information," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 37(3), pages 1-11, December.
    4. Hess, Stephane & Train, Kenneth, 2017. "Correlation and scale in mixed logit models," Journal of choice modelling, Elsevier, vol. 23(C), pages 1-8.
    5. Laura O. Taylor & Ronald G. Cummings, 1999. "Unbiased Value Estimates for Environmental Goods: A Cheap Talk Design for the Contingent Valuation Method," American Economic Review, American Economic Association, vol. 89(3), pages 649-665, June.
    6. repec:ken:wpaper:0901 is not listed on IDEAS
    7. Jochen Hartl & Roland Herrmann, 2009. "Do they always say no? German consumers and second‐generation GM foods," Agricultural Economics, International Association of Agricultural Economists, vol. 40(5), pages 551-560, September.
    8. Jayson L. Lusk & W. Bruce Traill & Lisa O. House & Carlotta Valli & Sara R. Jaeger & Melissa Moore & Bert Morrow, 2006. "Comparative Advantage in Demand: Experimental Evidence of Preferences for Genetically Modified Food in the United States and European Union," Journal of Agricultural Economics, Wiley Blackwell, vol. 57(1), pages 1-21, March.
    9. Cameron, Trudy Ann, 1988. "A new paradigm for valuing non-market goods using referendum data: Maximum likelihood estimation by censored logistic regression," Journal of Environmental Economics and Management, Elsevier, vol. 15(3), pages 355-379, September.
    10. Hayes, Dermot J. & Kliebenstein, James & Shogren, Jason F. & Fox, John A., 1995. "Economics of Food Safety," Staff General Research Papers Archive 10453, Iowa State University, Department of Economics.
    11. John A. List, 2001. "Do Explicit Warnings Eliminate the Hypothetical Bias in Elicitation Procedures? Evidence from Field Auctions for Sportscards," American Economic Review, American Economic Association, vol. 91(5), pages 1498-1507, December.
    12. Cameron, Trudy Ann & James, Michelle D, 1987. "Efficient Estimation Methods for "Closed-ended' Contingent Valuation Surveys," The Review of Economics and Statistics, MIT Press, vol. 69(2), pages 269-276, May.
    13. Zimmermann, Roukayatou & Qaim, Matin, 2004. "Potential health benefits of Golden Rice: a Philippine case study," Food Policy, Elsevier, vol. 29(2), pages 147-168, April.
    14. Jayson L. Lusk, 2003. "Effects of Cheap Talk on Consumer Willingness-to-Pay for Golden Rice," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(4), pages 840-856.
    15. Timothy C. Haab & Kenneth E. McConnell, 1998. "Referendum Models and Economic Values: Theoretical, Intuitive, and Practical Bounds on Willingness to Pay," Land Economics, University of Wisconsin Press, vol. 74(2), pages 216-229.
    16. House, Lisa & Lusk, Jayson L. & Jaeger, Sara & Traill, W. Bruce & Moore, Melissa & Valli, Carlotta & Morrow, Bert & Yee, Wallace M.S., 2004. "Objective And Subjective Knowledge: Impacts On Consumer Demand For Genetically Modified Foods In The United States And The European Union," 2004 Annual meeting, August 1-4, Denver, CO 20125, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    17. Charles Noussair & StÈphane Robin & Bernard Ruffieux, 2004. "Do Consumers Really Refuse To Buy Genetically Modified Food?," Economic Journal, Royal Economic Society, vol. 114(492), pages 102-120, January.
    18. Carolina González & Nancy Johnson & Matin Qaim, 2009. "Consumer Acceptance of Second‐Generation GM Foods: The Case of Biofortified Cassava in the North‐east of Brazil," Journal of Agricultural Economics, Wiley Blackwell, vol. 60(3), pages 604-624, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jiongxun Chen & Linxiu Wang & Tiantian Gu & Chenyang Wang & Enyang Hao, 2023. "Demands for Community Services and Associated Factors among Residents in Smart Communities: A Case Study of Xuzhou City," IJERPH, MDPI, vol. 20(4), pages 1-19, February.
    2. Yang Yang & Jill E. Hobbs, 2020. "How Do Cultural Worldviews Shape Food Technology Perceptions? Evidence from a Discrete Choice Experiment," Journal of Agricultural Economics, Wiley Blackwell, vol. 71(2), pages 465-492, June.
    3. Zhu, Zhanguo & Zhang, Tong & Hu, Wuyang, 2023. "The accumulation and substitution effects of multi-nation certified organic and protected eco-origin food labels in China," Ecological Economics, Elsevier, vol. 203(C).
    4. Changxin Yu & Haiyan Deng & Ruifa Hu, 2019. "Attitude Gaps with Respect to GM Non-Food Crops and GM Food Crops and Confidence in the Government’s Management of Biotechnology: Evidence from Beijing Consumers, Chinese Farmers, Journalists, and Gov," Sustainability, MDPI, vol. 12(1), pages 1-19, December.
    5. repec:ags:aaea22:335680 is not listed on IDEAS
    6. Fuli Tan & Jingjing Wang & Yixuan Guo & Taian Deng & Hans De Steur & Shenggen Fan, 2023. "Cost‐effectiveness of zinc interventions in China: A cohort‐based Markov model," Agribusiness, John Wiley & Sons, Ltd., vol. 39(S1), pages 1437-1457, December.
    7. Zheng, Qiujie & Nayga, Rodolfo M. Jr. & Yang, Wei & Tokunaga, Kanae, 2022. "Do U.S. consumers value genetically modified farmed salmon?," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322154, Agricultural and Applied Economics Association.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jin, Jing & Wailes, Eric & Dixon, Bruce & Nayga, Rodolfo M. Jr. & Zheng, Zhihao, 2014. "Consumer Acceptance and Willingness to Pay for Genetically Modified Rice in China," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 170503, Agricultural and Applied Economics Association.
    2. Lijia Shi & Lisa A. House & Zhifeng Gao, 2013. "Impact of Purchase Intentions on Full and Partial Bids in BDM Auctions: Willingness-to-pay for Organic and Local Blueberries," Journal of Agricultural Economics, Wiley Blackwell, vol. 64(3), pages 707-718, September.
    3. Bernard Ruffieux & Anne Rozan & Stéphane Robin, 2008. "Mesurer les préférences du consommateur pour orienter les décisions des pouvoirs publics : l'apport de la méthode expérimentale," Économie et Prévision, Programme National Persée, vol. 182(1), pages 113-127.
    4. Roosen, Jutta & Bieberstein, Andrea & Marette, Stephan & Blanchemanche, Sandrine & Vandermoere, Frederic, 2011. "The Effect of Information Choice and Discussion on Consumers' Willingness-to-Pay for Nanotechnologies in Food," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 36(2), pages 1-10, August.
    5. Rousu, Matthew C. & Monchuk, Daniel C. & Shogren, Jason F. & Kosa, Katherine M., 2005. "Consumer Willingness to Pay for "Second-Generation" Genetically Engineered Products and the Role of Marketing Information," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 37(3), pages 1-11, December.
    6. Richard T. Carson, 2011. "Contingent Valuation," Books, Edward Elgar Publishing, number 2489.
    7. Özdemir, Semra & Johnson, F. Reed & Hauber, A. Brett, 2009. "Hypothetical bias, cheap talk, and stated willingness to pay for health care," Journal of Health Economics, Elsevier, vol. 28(4), pages 894-901, July.
    8. Bruner, David M. & Huth, William L. & McEvoy, David M. & Morgan, O. Ashton, 2014. "Consumer Valuation of Food Safety: The Case of Postharvest Processed Oysters," Agricultural and Resource Economics Review, Cambridge University Press, vol. 43(2), pages 300-318, August.
    9. Jayson L. Lusk, 2003. "Effects of Cheap Talk on Consumer Willingness-to-Pay for Golden Rice," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(4), pages 840-856.
    10. Shi, Lijia & House, Lisa & Gao, Zhifeng, 2012. "Consumers’ Willingness-to-pay for Organic and Local Blueberries: A Multi-store BDM Auction Controlling for Purchase Intentions," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124998, Agricultural and Applied Economics Association.
    11. Dmitriy Volinskiy & Wiktor L. Adamowicz & Michele Veeman & Lorie Srivastava, 2009. "Does Choice Context Affect the Results from Incentive‐Compatible Experiments? The Case of Non‐GM and Country‐of‐Origin Premia in Canola Oil," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 57(2), pages 205-221, June.
    12. David M. Bruner & William L. Huth & David M. McEvoy & O. Ashton Morgan, 2011. "Accounting for Taste: Consumer Valuations for Food-Safety Technologies," Working Papers 11-09, Department of Economics, Appalachian State University.
    13. Lusk, Jayson L. & Rozan, Anne, 2008. "Public Policy and Endogenous Beliefs: The Case of Genetically Modified Food," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 33(2), pages 1-20.
    14. Whitehead, John C. & Cherry, Todd L., 2007. "Willingness to pay for a Green Energy program: A comparison of ex-ante and ex-post hypothetical bias mitigation approaches," Resource and Energy Economics, Elsevier, vol. 29(4), pages 247-261, November.
    15. Aadland, David & Caplan, Arthur J., 2005. "A Bayesian Examination of Anchoring Bias and Cheap Talks in Constructed Markets," 2005 Annual meeting, July 24-27, Providence, RI 19568, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    16. repec:ken:wpaper:0602 is not listed on IDEAS
    17. Frank van Tongeren & John Beghin & Stéphane Marette, 2009. "A Cost-Benefit Framework for the Assessment of Non-Tariff Measures in Agro-Food Trade," OECD Food, Agriculture and Fisheries Papers 21, OECD Publishing.
    18. Brooks, Kathleen R. & Lusk, Jayson L., 2012. "Public and Private Preferences for Animal Cloning Policies," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 37(3), pages 1-17.
    19. Lusk, Jayson L. & Daniel, M. Scott & Mark, Darrell R. & Lusk, Christine L., 2001. "Alternative Calibration And Auction Institutions For Predicting Consumer Willingess To Pay For Nongenetically Modified Corn Chips," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 26(1), pages 1-18, July.
    20. Jason F. Shogren & Lusine Tadevosyan, 2011. "Le comportement d'enchérisseur dans une enchère conséquentialiste au second prix," Revue française d'économie, Presses de Sciences-Po, vol. 0(3), pages 13-28.
    21. David Aadland & Arthur Caplan & Owen Phillips, 2007. "A Bayesian examination of information and uncertainty in contingent valuation," Journal of Risk and Uncertainty, Springer, vol. 35(2), pages 149-178, October.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:jageco:v:69:y:2018:i:3:p:705-725. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0021-857X .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.