IDEAS home Printed from https://ideas.repec.org/a/eee/jfpoli/v78y2018icp38-50.html
   My bibliography  Save this article

The price of non-genetically modified (non-GM) food

Author

Listed:
  • Kalaitzandonakes, Nicholas
  • Lusk, Jayson
  • Magnier, Alexandre

Abstract

•Added costs for non-GM ingredients and changes in demand for non-GM foods determine non-GM price premiums.•Non-GM price premiums were stable over the 8 year period of analysis.•US Consumers have been paying price premiums of 10–62% for the non-GM products analyzed.•The cost of mandatory labeling of GM foods depends on manufacturer decisions.•If food manufacturers reformulate with non-GM ingredients, costs to consumers could be substantial.

Suggested Citation

  • Kalaitzandonakes, Nicholas & Lusk, Jayson & Magnier, Alexandre, 2018. "The price of non-genetically modified (non-GM) food," Food Policy, Elsevier, vol. 78(C), pages 38-50.
    • Handle: RePEc:eee:jfpoli:v:78:y:2018:i:c:p:38-50
    DOI: 10.1016/j.foodpol.2018.02.005
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0306919218301131
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.foodpol.2018.02.005?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
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. McBride, William & Greene, Catherine, 2015. "Despite Profit Potential, Organic Field Crop Acreage Remains Low," Amber Waves:The Economics of Food, Farming, Natural Resources, and Rural America, United States Department of Agriculture, Economic Research Service, issue 10, pages 1-1, November.
    2. Wilhelm Klümper & Matin Qaim, 2014. "A Meta-Analysis of the Impacts of Genetically Modified Crops," PLOS ONE, Public Library of Science, vol. 9(11), pages 1-7, November.
    3. Mas-Colell, Andreu & Whinston, Michael D. & Green, Jerry R., 1995. "Microeconomic Theory," OUP Catalogue, Oxford University Press, number 9780195102680.
    4. Greene, Catherine R. & Dimitri, Carolyn & Lin, Biing-Hwan & McBride, William D. & Oberholtzer, Lydia & Smith, Travis A., 2009. "Emerging Issues in the U.S. Organic Industry," Economic Information Bulletin 58617, United States Department of Agriculture, Economic Research Service.
    5. Patrick Bajari & C. Lanier Benkard, 2005. "Demand Estimation with Heterogeneous Consumers and Unobserved Product Characteristics: A Hedonic Approach," Journal of Political Economy, University of Chicago Press, vol. 113(6), pages 1239-1276, December.
    6. McFadden, Brandon R. & Lusk, Jayson L., 2013. "Effects of Cost and Campaign Advertising on Support for California’s Proposition 37," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 38(2), pages 1-13, August.
    7. Wesseler, Justus, 2014. "Biotechnologies and agrifood strategies: opportunities, threats and economic implications," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), vol. 3(3), pages 1-18, December.
    8. Kalaitzandonakes, Nicholas & Magnier, Alexandre, 2013. "The economics of adventitious presence thresholds in the EU seed market," Food Policy, Elsevier, vol. 43(C), pages 237-247.
    9. Lusk, Jayson L. & Jamal, Mustafa & Kurlander, Lauren & Roucan, Maud & Taulman, Lesley, 2005. "A Meta-Analysis of Genetically Modified Food Valuation Studies," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 30(1), pages 1-17, April.
    10. Rosen, Sherwin, 1974. "Hedonic Prices and Implicit Markets: Product Differentiation in Pure Competition," Journal of Political Economy, University of Chicago Press, vol. 82(1), pages 34-55, Jan.-Feb..
    11. Verena Seufert & Navin Ramankutty & Jonathan A. Foley, 2012. "Comparing the yields of organic and conventional agriculture," Nature, Nature, vol. 485(7397), pages 229-232, May.
    12. Kelvin J. Lancaster, 1966. "A New Approach to Consumer Theory," Journal of Political Economy, University of Chicago Press, vol. 74(2), pages 132-132.
    13. Gary E. Marchant & Guy A. Cardineau & Thomas P. Redick, 2010. "Thwarting Consumer Choice," Books, American Enterprise Institute, number 50365, September.
    14. Nicholas Kalaitzandonakes & Richard Maltsbarger & James Barnes, 2001. "Global Identity Preservation Costs in Agricultural Supply Chains," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 49(4), pages 605-615, December.
    15. Frederick V. Waugh, 1928. "Quality Factors Influencing Vegetable Prices," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 10(2), pages 185-196.
    16. Giannakas Konstantinos & Kalaitzandonakes Nicholas & Magnier Alexander & Mattas Konstadinos, 2011. "Economic Effects of Purity Standards in Biotech Labeling Laws," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 9(1), pages 1-47, April.
    17. repec:aei:rpbook:24893 is not listed on IDEAS
    18. Lusk, Jayson L. & Roosen, Jutta & Shogren, Jason (ed.), 2011. "The Oxford Handbook of the Economics of Food Consumption and Policy," OUP Catalogue, Oxford University Press, number 9780199569441.
    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. McFadden, Brandon R. & Lusk, Jayson L. & Pollack, Adam & Rumble, Joy N. & Stofer, Kathryn A. & Folta, Kevin M., 2023. "A randomized group approach to identifying label effects," Journal of choice modelling, Elsevier, vol. 48(C).
    2. repec:ags:aaea22:335857 is not listed on IDEAS

    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. Belleflamme,Paul & Peitz,Martin, 2015. "Industrial Organization," Cambridge Books, Cambridge University Press, number 9781107687899, September.
    2. Steven S. Vickner, 2017. "Friend or PHO? On the Marginal Valuation of Reducing the Content of Trans Fat in Processed Foods," Advances in Management and Applied Economics, SCIENPRESS Ltd, vol. 7(2), pages 1-2.
    3. Steven S. Vickner, 2015. "Estimating the Implicit Price of Convenience: A Hedonic Analysis of the US Breakfast Sausage Market," Agribusiness, John Wiley & Sons, Ltd., vol. 31(2), pages 281-292, April.
    4. Ankamah-Yeboah, Isaac & Nielsen, Max & Nielsen, Rasmus, 2016. "Price premium of organic salmon in Danish retail sale," Ecological Economics, Elsevier, vol. 122(C), pages 54-60.
    5. Ankamah-Yeboah Isaac & Max Nielsen & Rasmus Nielsen, 2015. "Organic Salmon – Considered a Fisheries or Agricultural Product Among Consumers?," 2015 EAFE (European Association of Fisheries Economists) Conference Papers 003, Nisea.
    6. Matthias Staudigel & Aleksej Trubnikov, 2022. "High price premiums as barriers to organic meat demand? A hedonic analysis considering species, cut and retail outlet," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 66(2), pages 309-334, April.
    7. Zvi Griliches, 1991. "Hedonic Price Indexes and the Measurement of Capital and Productivity: Some Historical Reflections," NBER Chapters, in: Fifty Years of Economic Measurement: The Jubilee of the Conference on Research in Income and Wealth, pages 185-206, National Bureau of Economic Research, Inc.
    8. Empen, Janine, 2011. "Preissetzung Auf Dem Deutschen Joghurtmarkt: Eine Hedonische Analyse," 51st Annual Conference, Halle, Germany, September 28-30, 2011 115362, German Association of Agricultural Economists (GEWISOLA).
    9. Yu Jiang & H. Holly Wang & Shaosheng Jin & Michael S. Delgado, 2019. "The Promising Effect of a Green Food Label in the New Online Market," Sustainability, MDPI, vol. 11(3), pages 1-14, February.
    10. Lars Nesheim, 2006. "Hedonic price functions," CeMMAP working papers CWP18/06, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.
    11. Jamsheed Shorish, 2019. "Hedonic pricing of cryptocurrency tokens," Digital Finance, Springer, vol. 1(1), pages 163-189, November.
    12. Leschewski, Andrea & Weatherspoon, Dave D. & Kuhns, Annemarie, 2016. "A Segmented Hedonic Analysis of the Nutritional Composition of Fruit Beverages," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 19(3), pages 1-22, August.
    13. Masset, Philippe & Weisskopf, Jean-Philippe, 2018. "Wine indices in practice: Nicely labeled but slightly corked," Economic Modelling, Elsevier, vol. 68(C), pages 555-569.
    14. Jaume García & Plácido Rodríguez & Federico Todeschini, 2020. "The Demand for the Characteristics of Football Matches: A Hedonic Price Approach," Journal of Sports Economics, , vol. 21(7), pages 688-704, October.
    15. Mathilde Poulhes, 2017. "From Latin Quarter to Montmartre Investigating Parisian Real-Estate Prices," Working Papers 2017-13, Center for Research in Economics and Statistics.
    16. Çağlayan Ebru & Arikan Eban, 2011. "Determinants of house prices in Istanbul: a quantile regression approach," Quality & Quantity: International Journal of Methodology, Springer, vol. 45(2), pages 305-317, February.
    17. Kuminoff, Nicolai V. & Parmeter, Christopher F. & Pope, Jaren C., 2008. "Hedonic Price Functions: Guidance On Empirical Specification," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6555, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    18. Daniel McFadden, 2014. "The new science of pleasure: consumer choice behavior and the measurement of well-being," Chapters, in: Stephane Hess & Andrew Daly (ed.), Handbook of Choice Modelling, chapter 2, pages 7-48, Edward Elgar Publishing.
    19. Robert J. Hill & Daniel Melser, 2008. "Hedonic Imputation And The Price Index Problem: An Application To Housing," Economic Inquiry, Western Economic Association International, vol. 46(4), pages 593-609, 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:eee:jfpoli:v:78:y:2018:i:c:p:38-50. 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: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/foodpol .

    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.