Consumers' Valuation of GMO Segregation Programs in Japan

Shigeru Matsumoto

Journal of Agricultural and Applied Economics, 2006, vol. 38, issue 1, 201-211

Abstract: The contingent valuation method was used to elicit Japanese consumers' willingness-to-pay for genetically modified organism (GMO) segregation programs. The results revealed that most consumers pay nonnegligible premiums for products produced under strict GMO-segregation programs. However, we found that the premium did not vary by the threshold level of GMO content in the product. We further found that a government certification did not increase the premium for GMO-segregation programs. Therefore, an additional mandatory regulation to reduce GMO contaminations would not be worthwhile because such a regulation would incur substantial enforcement costs.

Date: 2006
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