The European Union has been relatively cautious about using biotechnology in food production. A label regime combined with the right of individual member states to ban introduction of new genetically modified (GM) strains means thatGMfood products in effect are banned in many countries.
We show how it is possible to empirically test whether a ban can be motivated by reference to potential negative externalities. This is followed up by results from a choice experiment.We cannot reject the hypothesis of equal WTP for a ban and a labeling scheme.
Peter Frykblom and Carl Johan lagerkvist
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