The
Knowledge Factor
Reflecting on a career devoted to learning, Kenneth
Clark, the distinguished British historian and creator
of the television series and subsequent book Civilisation,
stated that over the years he had become more uncertain
about his opinions and his understanding of the workings
of societies save one thing: that the pursuit of knowledge
is the highest endeavor of civilization.
The role of knowledge in public and private decisionmaking
is often subtle and difficult to discern. Yet, knowledge
and understanding must provide the context for efficient
and equitable policy. This is where the Economic Research
Service (ERS) comes in, contributing to public and
private decisionmaking by providing objective analysis
of economic and policy issues related to agriculture,
food, natural resources, and rural development.
To complement its knowledge base, ERS frequently partners
with university researchers through contracts, cooperative
agreements, and grants. These joint efforts explore
topics from technology adoption, water quality, and
rural development to world trade, retail market power,
and diet and health. And while budget concerns often
limit the reach of our program, ERS’s relationships
with university researchers will continue to be an
important component in our strategy to insert economic
knowledge into the policy process.
A recent cooperative research effort highlights the
role of knowledge in private decisionmaking. ERS and
university researchers examined how information may
affect consumers’ purchases of biotech foods.
Biotech food labeling is a contentious issue both in
the United States and among U.S. trading partners.
Proponents of mandatory labeling argue that consumers
have a right to know whether their food has been produced
using biotechnology. Opponents argue that such labeling
will confuse, and, in many cases, unnecessarily alarm
consumers.
In the study, an experimental auction was conducted
to elicit consumers’ willingness to pay for food
items with and without biotech labels. Prior to bidding,
each participant received one of six information packets
containing statements about biotechnology gathered
from a variety of sources. What did the study find?
Scientific, verifiable information had a larger moderating
effect on consumers’ reaction to anti-biotech
statements than pro-biotech statements from biotech
companies. That is, knowledge has a powerful influence
on behavior.
Michael LeBlanc
Deputy Director for Research
Food and Rural Economics Division, ERS
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