(School of Agricultural Economics and Rural Development, Renmin University of China, Beijing, 100872, Academy of State Administration of Grain, Beijing, 100037)
Abstract: In recent years, there has been an increasing supply of genetically modified foods on the market, and both their quantity and variety are continually growing. However, the widespread lack of scientific knowledge of transgenic technology among most Chinese consumers has led to their disbelief in GM products, which are generally thought to be full of health risks, resulting in a continued decline in consumer acceptance of GM foods. As this phenomenon has received extensive attention in the academic circle, a number of specialists have carried out in-depth studies on the consumption of transgenic soybean oil.
However, as random sampling was not performed in the consumer selections therein, a deviation in the measurement of the willingness to pay was inevitable. To overcome the disadvantage, a set of two questionnaires, closed as well as open, were designed in this study by applying the method of hypothetical value evaluation. These questionnaires were then used to conduct an investigation into the consumption of soybean oil among Beijing residents. With the survey data obtained, it became a relatively easy job to measure the consumers' willingness to pay for non-GMO soybean oil by way of the Heckman model, which made it possible to overcome the sample selection bias and more accurately estimate the consumer's willingness to pay for GM and non-GMO soybean oil respectively.
At the same time, this paper also explains the formation mechanism of the ‘consumption paradox’ in the edible oil market, which is characterized by a ‘high market share’ of the genetically modified soybean oil and a ‘low acceptance’ by the consumers.
It was also found that the additional willingness to pay for non-GMO soybean oil as against GM soybean oil is in the range of 1.5-2.1 yuan, with a premium ratio of 7.76% to 10.28%.
The significant influencing factors on the consumers’ willingness to pay for non-GMO soybean oil include their gender, age and educational level, monthly income and food expenditure of the household, the degree of trust on non-GMO food certification as well as on information about authentication.
This paper, based on the above conclusions, proposes to the policy-makers suggestions as below.M perfecting the information disclosure system of genetically modified food to protect the public's right to know; carrying out science popularization activities on genetically modified foods to increase public awareness of GN technology; strengthening agricultural R & D of GM technology; expanding the domestic non-GMO soybean acreage to meet consumer demand for non-GMO soybean oil.
Key Words: WTP; genetically modified; non-GMO; soybean oil