CONSUMER WILLINGNESS TO PAY FOR PESTICIDE-FREE FRESH PRODUCE

Sukant K. Misra · Chung L. Huang · Stephen L. Ott

227 citations0/0 files storedRePEc: Research Papers in Economics

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Economic and Environmental Valuation Economics of Agriculture and Food Markets Organic Food and Agriculture

Abstract

The study uses primary data collected from a survey conducted in Georgia to analyze consumer preferences for testing and certification of fresh produce and consumers' willingness to pay for fresh produce that is certified as free of pesticide residues (FPR). An ordered probit model was estimated to identify the impacts of various exogenous variables on the probability of consumers' willingness to pay for a number of alternative price premiums. The results indicate that consumers' willingness to pay differs with respect to a number of factors. The study concludes that most of the consumers recommend testing and certification, but they oppose large price markups for certified-FPR fresh produce.

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References

1951Coefficient Alpha and the Internal Structure of Tests 1983Limited-dependent and qualitative variables in econometrics 1982Mail and Telephone Surveys: The Total Design Method.1989Using surveys to value public goods: the contingent valuation method 1981Econometric Models of Probabilistic Choice 1975Consumer Demand: A New Approach.1991Using Surveys to Value Public Goods: The Contingent Valuation Method.1999Consumer's Surplus in Commodity Space

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2002Willingness to Pay for Environmental Practices: Implications for Eco-Labeling 2005A meta-analysis of the willingness to pay for reductions in pesticide risk exposure 2005Determination of the surplus that consumers are willing to pay for an organic wine 2005European Preferences for Beef Steak Attributes 1999CONSUMER PREFERENCES FOR FOOD SAFETY ATTRIBUTES IN FRESH APPLES: MARKET SEGMENTS, CONSUMER CHARACTERISTICS, AND MARKETING OPPORTUNITIES 2001

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