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The increasing supply of food made possible through biotechnology will lead to reduced food prices, thereby offering benefits to consumers. However, if some consumers (foreign or domestic) wish to avoid foods produced through biotechnology, there will be costs associated with keeping biotech and non-biotech foods separate. ERS research measures these costs and examines the likely impacts of this product differentiation.


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Economics of Food Labeling traces the economic theory behind food labeling and presents five case studies in which the government has intervened in labeling or in which government intervention has been proposed. In general, mandatory food-labeling requirements are best suited to alleviating problems of asymmetric information and are rarely effective in redressing environmental or other spillovers associated with food production and consumption.

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updated: December 21, 2000

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