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Abstract

This paper employs household survey data to further examine whether biotech food labeling has an impact on consumers’ vegetable oil purchasing decision. Direct variables indicating consumers’ response to label regulation are employed to test label effect. Endogeneity issues impeding label effect measurement are especially addressed. The empirical results support our previous finding that in the short run the market share of biotech oil decreased significantly by a small amount as a result of label enforcement. To capture a comprehensive picture of the role played by biotech food label and the market trend in the long run, major concerns and needs for the future are raised including a series of data issues and a special focus on who make purchasing decision.

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