GMO and non-GMO labeling effects: evidence from a quasi-natural experiment
Author(s)
Adalja, Aaron
Liaukonyte, Jura
Wang, Emily
Zhu, Xinrong
Type
Journal Article
Abstract
The United States recently mandated disclosure labels on all foods that contain genetically modified organisms (GMOs), despite longstanding, widespread use of voluntary third-party non-GMO labeling. We leverage the earlier passage and implementation of a mandatory GMO labeling law in Vermont as a quasi-natural experiment to show that adding this mandatory labeling into a market with pre-existing voluntary non-GMO labels had no effect on demand. Instead, the legislative process made consumers aware of GMO topics and increased non-GMO product sales before the GMO labeling mandate went into effect. The GMO-related legislative processes also increased non-GMO product demand in other states that considered, but did not implement, GMO labeling mandates. We find that 36% of new non-GMO product adoption can be explained by differences in consumer awareness tied to legislative activity. Our findings suggest that voluntary non-GMO labels may have provided an efficient disclosure mechanism without mandatory GMO labels.
Date Issued
2023-03
Date Acceptance
2022-06-01
Citation
Marketing Science, 2023, 42 (2), pp.233-250
ISSN
0732-2399
Publisher
Institute for Operations Research and Management Sciences
Start Page
233
End Page
250
Journal / Book Title
Marketing Science
Volume
42
Issue
2
Copyright Statement
This work is licensed under a Creative Commons Attribution-NonCommercialNoDerivatives 4.0 International License. You are free to download this work and share with others,
but cannot change in any way or use commercially without permission, and you must attribute this
work as “Marketing Science. Copyright © 2022 The Author(s). https://doi.org/10.1287/mksc.2022.
1375, used under a Creative Commons Attribution License: https://creativecommons.org/licenses/
by-nc-nd/4.0/.”
but cannot change in any way or use commercially without permission, and you must attribute this
work as “Marketing Science. Copyright © 2022 The Author(s). https://doi.org/10.1287/mksc.2022.
1375, used under a Creative Commons Attribution License: https://creativecommons.org/licenses/
by-nc-nd/4.0/.”
Identifier
https://www.webofscience.com/api/gateway?GWVersion=2&SrcApp=PARTNER_APP&SrcAuth=LinksAMR&KeyUT=WOS:000849339800001&DestLinkType=FullRecord&DestApp=ALL_WOS&UsrCustomerID=a2bf6146997ec60c407a63945d4e92bb
Subjects
Business
Business & Economics
difference-in-differences
GENETICALLY-MODIFIED FOOD
GMO labeling
INFORMATION
policy evaluation
PREFERENCES
RESPONSES
Social Sciences
synthetic control
Publication Status
Published
Date Publish Online
2022-08-29