| Agricultural biotechnology and genetically modified foods in particular, have been receiving increasing media attention as consumer awareness of the new technology spreads. Ethical concerns and fears over uncertain long-term health and environmental effects have been escalating. As a result of the uncertainty, some consumers are requesting informational labelling to provide them with the ability to choose between consuming genetically modified and non-genetically modified foods. This thesis looks at the effects of biotechnological innovation on the total welfare of society when consumers can and cannot distinguish between genetically modified and non-genetically modified foods. Since there is an adverse quality effect as well as a beneficial price effect, the overall effect on consumers and society as a whole is ambiguous in general and could be harmful. |
