＂Does Contain＂ Versus ＂Does Not Contain＂: How Do Labeling Strategies for Genetically Modified Foods Impact Consumer Welfare?

Li Zhao ； Shumin Liu

《Frontiers in Sustainable Development》 1卷6期 (2021/09) Pp. 30-38

https://doi.org/10.29500/FSD.202109_1(6).0005

摘要

The genetically modified (GM) foods may decrease the usage of fertilizers and pesticides and protect environment. Nevertheless, opponents fear GM crops and foods may have potential environment and public health. Greenpeace and Friends of the Earth both advocate labels on GM foods to give consumers the opportunity to choose whether to consume GM foods. In this circumstance, the current article explores the impact of two labeling strategies including ＂Does Contain＂ and ＂Does not Contain＂ GM ingredients on consumer welfare using an adjusted Kumaraswamy distribution. Whether ＂Does not contain＂ strategy is superior to ＂Does contain＂ strategy under the voluntary labeling regime dependes on the inspectoin cost. In the context of lower inspection cost, the increasing inspection cost initially has a positive impact on the superiority of the ＂Does Contain＂ strategy, but eventually the advantage of ＂Does contain＂ remains unchanged after the label-free products are out of market. Additionally, the ＂Does not contain＂ strategy has a stronger advantage under the higher probabilities of GM food in the label-free product and the higher difference of likelihoods of opportunistic behavior.

關鍵字

Kumaraswamy distribution ； Consumer welfare ； Experimental economics ； ＂Does contain＂ strategy ； ＂Does not contain＂ strategy

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