Working Paper Number
WP #02014, October 2002
Genetically modified (GM) foods have caused many controversies. One important controversy relates to tolerance—the impurity rate that is tolerated before a commodity must be labeled as genetically modified. Currently, the United States does not have a specific tolerance or threshold level for GM foods. This paper uses experimental auctions to determine consumers’ acceptance of non-GM foods with zero, 1 percent, and 5 percent tolerance for genetically modified material. Our results indicate that consumers would pay less for food that tolerates GM material, but the discount is not significantly different for foods with 1-percent and 5-percent GM content.
Published in Review of Agricultural Economics, Vol.26 no. 1 (2004):19-31.
Rousu, Matthew; Huffman, Wallace E.; Shogren, Jason F.; and Tegene, Abebayehu, "Are U.S. Consumers Tolerant of GM Foods?" (2002). Economics Working Papers (2002–2016). 239.