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What labelling policy for consumer choice? The case of genetically modified food in Canada and Europe

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  • Guillaume P. Gruère
  • Colin A. Carter
  • Y. Hossein Farzin

Abstract

. Faced with divergent opinions among consumers on the use of genetically modified (GM) foods, Canada has adopted a voluntary labelling approach for non‐GM foods, whereas the European Union has a mandatory labelling policy for GM foods. Interestingly, both labelling systems have resulted in very little, if any, additional consumer choice. Using an analytical model, we show that the coexistence of GM and non‐GM products at the retail level depends on the labelling policy, consumer perceptions, and the type of product. Although voluntary labelling tends to favour the use of GM products, it is more likely to provide consumer choice. Confrontés à des opinions publiques divergentes sur l'usage des aliments génétiquement modifiés (GM), le Canada a adopté une politique d'étiquetage volontaire pour les aliments non‐GM alors que l'Union Européenne a mis en place une politique d'étiquetage obligatoire des aliments GM. Curieusement, ces deux systèmes d'étiquetage n'ont pas réellement permis de faciliter le choix des consommateurs. A l'aide d'un modèle analytique, nous démontrons que la coexistence des produits GM et non‐GM au niveau du commerce de détail dépend de la politique d'étiquetage, de la perception des consommateurs, et du type de produit. Bien que l'étiquetage volontaire ait tendance à favoriser l'usage des produits GM, cette approche est plus à même de faciliter le choix du consommateur que l'étiquetage obligatoire.

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  • Guillaume P. Gruère & Colin A. Carter & Y. Hossein Farzin, 2008. "What labelling policy for consumer choice? The case of genetically modified food in Canada and Europe," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 41(4), pages 1472-1497, November.
  • Handle: RePEc:wly:canjec:v:41:y:2008:i:4:p:1472-1497
    DOI: 10.1111/j.1540-5982.2008.00512.x
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    Cited by:

    1. 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.
    2. Bansal, Sangeeta & Gruère, Guillaume P., 2012. "Implications of mandatory labeling of GM food in India: Evidence from the supply side," Food Policy, Elsevier, vol. 37(4), pages 467-472.
    3. Choi, E. Kwan, 2010. "International trade in genetically modified products," International Review of Economics & Finance, Elsevier, vol. 19(3), pages 383-391, June.
    4. Zhao, Li & Gu, Haiying & Yue, Chengyan & Ahlstrom, David, 2013. "Consumer welfare and GM food labeling: A simulation using an adjusted Kumaraswamy distribution," Food Policy, Elsevier, vol. 42(C), pages 58-70.
    5. Amrita Chatterjee & Arpita Ghose, 2016. "Consumer’s Acceptance towards Genetically Modified Crops and Growth of the Economy: A Theoretical Approach," Working Papers 2016-137, Madras School of Economics,Chennai,India.
    6. Thomas, Elizabeth & Fan, Linlin & Stevens, Andrew W., 2020. "Consumer Purchasing Response to Genetically Engineered Labeling," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304523, Agricultural and Applied Economics Association.
    7. Jane Kolodinsky & Sean Morris & Orest Pazuniak, 2019. "How consumers use mandatory genetic engineering (GE) labels: evidence from Vermont," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 36(1), pages 117-125, March.
    8. Bovay, John & Alston, Julian M., 2018. "GMO food labels in the United States: Economic implications of the new law," Food Policy, Elsevier, vol. 78(C), pages 14-25.
    9. Huffman Wallace & McCluskey Jill, 2017. "Food Labels, Information, and Trade in GMOs," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 15(1), pages 1-9, January.

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    More about this item

    JEL classification:

    • L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy

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