Assessment of Willingness to Pay for Good Agricultural Practice Cabbage
Abstract
This paper aims to investigate factors determining the probability of consumers’ willingness to pay a premium price for safe cabbage, as well as to estimate the mean willingness to pay a premium price for safe cabbage of consumers. Interviews with survey questionnaire are conducted in Bangkok with 540 respondents. The contingent valuation method with single- and double-bounded models is employed. The coefficients used to calculate mean willingness to pay are estimated by Maximum Likelihood method. The estimation of the change in the probability of people willing to pay for standardized cabbage is assessed by marginal effects of each factor, which are calculated by probit model. The result finds 9 significant variables as the determinants of consumers' willingness to pay. 329 respondents express their willingness to pay for GAP cabbage while 143 respondents show their true zero bids. The estimation of mean willingness to pay, therefore, is done based on these two groups of respondents. The weighted mean willingness to pay for GAP cabbage is 3.54 baht/kilogram over the current market price of normal cabbage. This amount is much lower than the difference in the variable cost between non-GAP and GAP cabbage producers, making it difficult for farmers to turn to standardized process of production.
References
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[22] Oyekale, T.O., Ayegbokiki, A.O., and Oyekale, A.S. 2013. Awareness of IFSERAR’s Pasteurized Milk, Perception and Willingness to Pay in Odeda Local Government Area of Ogun State, Nigeria, J Hum Ecol, 2(44): 195-201.
[23] Saraithong, W. 2016. Estimating Willingness to Pay for Safe Beef, Journal of Environmental Management and Tourism, (Volume VII, Spring), 1(13): 94-104. doi:10.14505/jemt.v7.1(13).09.
[24] Skuras, D., Vakrou, A. 2002. Consumers' Willingness to Pay for Origin Labelled Wine: A Greek Case Study, British Food Journal, 11(104): 898-912.
[25] Tonsor, G.T., Schroeder, T.C., and Lusk, J.L. 2013. Consumer Valuation of Alternative Meat Origin Labels, Journal of Agricultural Economics, 3(64): 676-692.
[26] Whitehead, J.C. 2002. Incentive Incompatibility and Starting-point Bias in Iterative Valuation Questions. Land Economics, 78(2): 285-97. DOI:10.2307/3147274
[2] Buzby, J.C., Fox, J.A., Ready, R.C., and Crutchfield, S.R. 1998. Measuring consumer benefits of food safety risk reductions. Journal of Agricultural and Applied Economics, 30(1): 69–82.
[3] Calia, P., and Strazzera, E. 2000. Bias and Efficiency of Single vs. Double Bound Models for Contingent Valuation Studies: a Monte Carlo Analysis. Applied Economics,10(32): 1329-36.
[4] Chancharoenchai, K. 2017. How Consumers Price Fresh Whole Milk Label? Journal of Environmental Management and Tourism, Volume VIII, 1(17): 132-142. Available at: http://journals.aserspublishing.eu/ jemt/article/view/1065. DOI:10.14505/jemt.v8.1(17).14
[5] Cranfield, J. 2014. Will consumers pay for voluntary testing for BSE? Double-bound CVM evidence from Canada. Working Paper Series - 13-03. Institute for the Advanced Study of Food and Agricultural Policy. Department of Food, Agricultural and Resource Economics.
[6] Cerda, A.A., García, L.Y., Ortega-Farías, S., and Ubilla, Á.M. 2012. Consumer Preferences and Willingness to Pay for Organic Apples. Cien. Inv. Agr. 39(1): 47-59.
[7] Haab, T.C., and McConnell, K.E. 2002. Valuing Environmental and Natural Resources: The Econometrics of Non-market Valuation. Edward Elgar Publishing, ISBN: 1843765438, 9781843765431, 352 p.
[8] Hadker, N., Sharma, S., David, A., and Muraleedharan, T.R. 1997. Willingness-to-pay for Borivli National Park: Evidence from a Contingent Valuation. Ecological Economics, 21: 105-122.
[9] Halstead, J.M., Luloff, A.E. and Stevens, T.H. 1992. Protest Bidders in Contingent Valuation. Northeastern Journal of Agriculture Resource Economics, 21: 160-169.
[10] Hanemann, W.M., Loomis, J., and Kanninen, B. 1991. Statistical Efficiency of Double-Bounded Dichotomous Choice Contingent Valuation, American Journal of Agricultural Economics, 4(73): 1255-1263.
[11] Herriges, J.A., and Shogren, J.F. 1996. Starting Point Bias in Dichotomous Choice Valuation with Follow-Up Questioning, Journal of Environmental Economics and Management, 30: 112-131.
[12] Jerop, R., Kosgey, I.S., Owuor, G.O., and Chelanga, P.K. 2013. Consumer Willingness to Pay for Dairy Goat Milk in Siaya County, Kenya. Livestock Research for Rural Development. 25(125), Available at: http://www.lrrd.org/lrrd25/7/jero25123.htm (accessed November 25, 2014).
[13] Kimenju, S.C., and Groote, H.D. 2008. Consumer Willingness to Pay for Genetically Modified Food in Kenya, Agricultural Economics, 38: 35–46.
[14] Lancaster, K.J. 1966. A New Approach to Consumer Theory, The Journal of Political Economy, 2(74): 132-157.
[15] Loureiro, M.L., and Umberger, W.J. 2002. Estimating Consumer Willingness-to-Pay for Country-of-Origin Labels for Beef Products. Paper presented at Selected Paper 2002 American Agricultural Economics Association Annual Meetings, July 28-31, in Long Beach, California, USA.
[16] Loureiro, M.L., and Umberger, W.J. 2003. Estimating Consumer Willingness to Pay for Country-of-Origin Labeling, Journal of Agricultural and Resource Economics, 2(28): 287-301.
[17] Loureiro, M.L., and Umberger, W.J. 2005. Assessing Consumer Preferences for Country-of-Origin Labelling, Journal of Agricultural and Applied Economics, 1(37): 49-63.
[18] Loureiro, M.L., and Umberger, W.J. 2007. A Choice Experiment Model for Beef: What US Consumer Responses Tell Us About Relative Preference for Food Safety, Country-of-Origin Labelling and Traceability, Food Policy, 32: 496-514.
[19] Mabiso, A. 2005. Estimating Consumers’ Willingness-to-pay for Country-of-origin Labels in Fresh Apples and Tomatoes: A Double-Hurdle Probit Analysis of US Data Using Factor Scores. A Thesis of Master of Science, University of Florida, USA. Annual meeting, July 24-27, Providence, RI
[20] McCluskey, J.J., Grimsrud, K.M., Ouchi, H. and Wahl, T.I. 2005. Bovine Spongiform Encephalopathy in Japan: Consumers’ Food Safety Perceptions and Willingness to Pay for Tested Beef. The Australian Journal of Agricultural and Resource Economics, 49: 197–209.
[21] Mitchell, R.C., and Carson, R.T. 1989. Using Surveys to Value Public Goods: The Contingent Valuation Method. Washington, D.C., Johns Hopkins University Press. Available at: http://econweb.ucsd.edu/ ~rcarson/papers/UsingSurveysToValuePublicGoods.pdf
[22] Oyekale, T.O., Ayegbokiki, A.O., and Oyekale, A.S. 2013. Awareness of IFSERAR’s Pasteurized Milk, Perception and Willingness to Pay in Odeda Local Government Area of Ogun State, Nigeria, J Hum Ecol, 2(44): 195-201.
[23] Saraithong, W. 2016. Estimating Willingness to Pay for Safe Beef, Journal of Environmental Management and Tourism, (Volume VII, Spring), 1(13): 94-104. doi:10.14505/jemt.v7.1(13).09.
[24] Skuras, D., Vakrou, A. 2002. Consumers' Willingness to Pay for Origin Labelled Wine: A Greek Case Study, British Food Journal, 11(104): 898-912.
[25] Tonsor, G.T., Schroeder, T.C., and Lusk, J.L. 2013. Consumer Valuation of Alternative Meat Origin Labels, Journal of Agricultural Economics, 3(64): 676-692.
[26] Whitehead, J.C. 2002. Incentive Incompatibility and Starting-point Bias in Iterative Valuation Questions. Land Economics, 78(2): 285-97. DOI:10.2307/3147274
Published
2017-10-02
How to Cite
CHANCHAROENCHAI, Kanokwan; SARAITHONG, Wuthiya.
Assessment of Willingness to Pay for Good Agricultural Practice Cabbage.
Journal of Environmental Management and Tourism, [S.l.], v. 8, n. 3, p. 629-641, oct. 2017.
ISSN 2068-7729.
Available at: <https://journals.aserspublishing.eu/jemt/article/view/1391>. Date accessed: 25 apr. 2024.
doi: https://doi.org/10.14505//jemt.v8.3(19).14.
Section
Article
Copyright© 2023 The Author(s). Published by ASERS Publishing 2023. This is an open access article distributed under the terms of CC-BY 4.0 license.