Trading off health, environmental and genetic modification attributes in food

This study examines the trade-offs made by consumers between possible risks associated with genetically modified (GM) ingredients and potential health or environment benefits in food. A latent class model is used to analyse consumers' preferences for GM food. There is considerable diversity amongst consumers in risk attitudes to GM food. The analysis reveals that trade-offs between risks and related concerns associated with GM food and benefits that may be associated with introduced health and environmental attributes of food depend upon individual's characteristics. The findings have implications for public policies that seek to minimise the effects of perceived risk in food markets.