A European Perspective
New Horizons in Environmental Economics series
Edited by Ekin Birol and Phoebe Koundouri
Chapter 7: Latent Market Segmentation Analysis of Choice Experiment Data and Implications for the EU’s GM Labelling Policy?
7. Latent market segmentation analysis of choice experiment data and implications for the EU’s GM labelling policy Andreas Kontoleon and Mitsuyasu Yabe INTRODUCTION: GM LABELLING POLICY AND CONSUMER MARKET SEGMENTATION Over the past ten years the EU’s policy for regulating GM foods has moved from a moratorium-based policy to one based on labelling. This shift in EU GM policy – from an eﬀective ban of GM foods to a regime where such foods can be sold if appropriately labelled – largely reﬂects an attempt to balance its obligations towards the World Trade Organization and the apparent concerns of portions of the European public (Kalaitzandonakes, 2004). The EU’s most recent GM labelling regime (established in Directives No. 1829/2003 and 1830/2003) has been in eﬀect since April 2004 and is considered to be one of the most rigid and strict GM labelling regimes worldwide (Kalaitzandonakes, 2004). There are four main points of disparity between the EU’s labelling policies and those followed in other countries (Phillips and McNeill, 2000; Sheldon, 2004; Food Standards Agency, 2005). First, the EU has developed a much more stringent, strict and lengthy protocol for the scientiﬁc testing and authorisation of each new crop prior to its introduction into the market. Secondly, the EU has opted for a mandatory scheme as opposed to voluntary labelling schemes found in other countries such as the US and Canada. Thirdly, the EU has embraced a much wider range of food products that are to be included in its labelling scheme...
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