Perceptions and valuation of GM food: A study on the impact and importance of information provision

Abstract

Given the scientific uncertainties and differing arguments for and against genetically modified food, perceptions and valuation may depend on information about their different and conflicting potential effects. In this study we explore generic attitudes towards genetically modified organisms, particularly in food, and adopt an economic contingent valuation approach to highlight the relevance of information provision. The study focuses on young college students, who are more scientifically informed than the rest of the population. It explores perceptions and economic valuation of genetically modified food, and exposes respondents randomly to three information treatments concerning genetically modified organisms’ impacts (negative, positive or mixed). Applying the contingent valuation methodology allows us to expose individuals to a situation where they can express their willingness to accept a genetically modified ingredient in exchange for lower prices. We observe that exposing respondents to critical arguments about this kind of food negatively affects their economic valuations, whereas positive or mixed information have no impact. Albeit the conclusions are limited in terms of generalizability to the rest of the population, the results suggest there may still be scope for information provision. Furthermore, both policy-makers and firms may benefit from a more informed public. Policy-makers can gauge public opinion to legitimize policy options and firms can shape market decisions based on more informed and stable consumer preferences.