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Why public acceptance matters in GMO food markets?

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  • Yang, Anton C.

Abstract

Since 2011 there has been increasing debate with respect to the safety of genetically modified organisms (GMOs) in China. Many genetically modified (GM) crops have exceptional pest and disease resistance, can tolerate environmental stress, increase yields, and contribute to sustainable agriculture. However, Chinese consumers’ level of acceptance of GM foods is very low. In September 2014, China’s Ministry of Agriculture (MOA) suspended its import approval process for a GM soybean variety—marking the first time that Chinese officials cited public opinion as a reason to delay the approval of GM crops for importation. In 2015, China released its latest No.1 Central Document, which it emphasizes the accelerating of agricultural technological progress while focusing on China’s own agricultural modernization. 2 While reviewing the No. 1 Central document thoroughly, author’s view is that China’s policy is aimed at increasing the public acceptance of its domestic GM crops without necessarily taking any further actions to reduce trade barriers of foreign imports. This paper (1) links consumers’ attitude towards the consumption of GM foods to the latest changes in Chinese agricultural policy as well as the possible economic impacts on China (2) employs technical approaches in determining the effects the GMO debate in China has had and will have on the United States. A general equilibrium model with the GTAP framework is utilized to determine the impact on trade, focusing on export sales, domestic price changes, agricultural productivity changes and welfare effects of changing regulations and public acceptance of GMO crops in China. The paper examines the prospects of implementing rational agricultural policies on GM soybeans. It finds that Chinese agricultural policies aimed at increasing the public acceptance of GM soybeans as well as policies that promote GM technologies and boost land productivity will improve the economic welfare in both the United States and in China.

Suggested Citation

  • Yang, Anton C., 2015. "Why public acceptance matters in GMO food markets?," Conference papers 332565, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    • Handle: RePEc:ags:pugtwp:332565
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    File URL: https://ageconsearch.umn.edu/record/332565/files/7547.pdf
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    References listed on IDEAS

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    1. Huffman, Wallace E., 2010. "Consumer Acceptance of Genetically Modified Foods: Traits, Labels and Diverse Information," Working Papers 93168, Iowa State University, Department of Economics.
    2. Thomas W. Hertel & Bernard M. Hoekman & Will Martin, 2002. "Developing Countries and a New Round of WTO Negotiations," The World Bank Research Observer, World Bank, vol. 17(1), pages 113-140.
    3. Brockmeier, Martina, 2001. "A Graphical Exposition of the GTAP Model," GTAP Technical Papers 311, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
    4. Jackson, Lee Ann & Anderson, Kym, 2003. "WHY ARE US AND EU POLICIES TOWARD GMOs SO DIFFERENT?," 2003 Conference (47th), February 12-14, 2003, Fremantle, Australia 57898, Australian Agricultural and Resource Economics Society.
    5. Hertel, Thomas, 1997. "Global Trade Analysis: Modeling and applications," GTAP Books, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University, number 7685, December.
    6. Brockmeier, Martina, 2001. "A Graphical Exposition Of The Gtap Model," Technical Papers 28706, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
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