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How does biotech food labelling affect consumers’ purchasing preferences and the market? Evidence from urban China

Author

Listed:
  • Zhong, Funing
  • Chen, Xi

Abstract

This paper examines whether and how biotech labelling has had an impact on Chinese consumers’ vegetable oil purchasing decisions. The authors used sales data from Nanjing and household survey data from Jiangsu province. They found that the market share of biotech oils immediately decreased as a result, though the decrease was small in absolute terms (but statistically significant). In addition, the changes in the biotech oil market share were affected by the structural effect of the rich, while there was no apparent gross consumption effect of the poor, which could have been underestimated due to a series of factors concerning the two datasets applied.

Suggested Citation

  • Zhong, Funing & Chen, Xi, 2009. "How does biotech food labelling affect consumers’ purchasing preferences and the market? Evidence from urban China," MPRA Paper 14702, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:14702
    as

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    File URL: https://mpra.ub.uni-muenchen.de/14702/1/MPRA_paper_14702.pdf
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    References listed on IDEAS

    as
    1. Grimsrud, Kristine M. & McCluskey, Jill J. & Loureiro, Maria L. & Wahl, Thomas I., 2002. "Consumer Attitudes Towards Genetically Modified Foods In Norway," 2002 Annual meeting, July 28-31, Long Beach, CA 19818, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    2. 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.
    3. Deborah Vaughn Nestor, 1998. "Policy Evaluation with Combined Actual and Contingent Response Data," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(2), pages 264-276.
    4. Lin, William W. & Somwaru, Agapi & Tuan, Francis C. & Huang, Jikun & Bai, Junfei, 2005. "Consumers' Willingness to Pay for Biotech Foods in China," 2005 Annual meeting, July 24-27, Providence, RI 19569, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    5. Dai, Yingchun & Tuan, Francis C. & Lin, William W. & Zhong, Funing & Chen, Xi, 2006. "How does Biotech Labeling Affect Consumers' Purchasing Behavior? A Case Study of Vegetable Oils in Nanjing, China," 2006 Annual meeting, July 23-26, Long Beach, CA 21235, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    6. Lin, William W. & Somwaru, Agapi & Tuan, Francis C. & Huang, Jikun & Bai, Junfei, 2004. "Consumer Attitudes Toward Biotech Foods in China," 2004 Annual meeting, August 1-4, Denver, CO 20359, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Chen, Xi & Zhou, Bin & Zhong, Funing, 2010. "Do Consumers Really Care about Genetically Modified (GM) Food Label? What Do We Know? What Else Should We Know?," Journal of Economics and Econometrics, Economics and Econometrics Society, vol. 53(2), pages 32-56.

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    More about this item

    Keywords

    biotech labelling; actual sales data; vegetable oil; market share; China;
    All these keywords.

    JEL classification:

    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
    • P46 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Consumer Economics; Health; Education and Training; Welfare, Income, Wealth, and Poverty
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy

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