Bovine spongiform encephalopathy in Japan: consumers’ food safety perceptions and willingness to pay for tested beef
AbstractThe discovery of bovine spongiform encephalopathy (BSE), commonly known as ‘mad cow disease’, in Japan caused anxiety about consuming beef and beef products. As a result, there was a sudden fall in sales of beef that hurt the Japanese beef industry as well as major beef exporters to Japan. We analyse factors that affect Japanese consumers’ willingness to pay (WTP) price premiums for BSE-tested beef and estimate the mean WTP for BSE-tested beef using data obtained from a consumer survey in Japan. A single-bounded dichotomous choice contingent valuation model is used to recover the premium amount. We find that attitudes to food safety, reduction in beef consumption following the BSE outbreak, and being female all have a statistically significant positive effect on the WTP for BSE-tested beef. Interestingly, demographic variables such as age and income do not affect the WTP, possibly indicating that the BSE scare similarly affected multiple segments of the population. In our sample, consumers are willing to pay a premium on average of greater than 50 per cent for BSE-tested beef.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Australian Agricultural and Resource Economics Society in its journal Australian Journal of Agricultural and Resource Economics.
Volume (Year): 49 (2005)
Issue (Month): 2 (June)
Contact details of provider:
Postal: AARES Central Office Manager, Crawford School of Public Policy, ANU, Canberra ACT 0200
Phone: 0409 032 338
Web page: http://www.aares.info
More information through EDIRC
beef; bovine spongiform encephalopathy; Japan; Demand and Price Analysis; Food Consumption/Nutrition/Food Safety;
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- R. K. Blamey & J. W. Bennett & M. D. Morrison, 1999. "Yea-Saying in Contingent Valuation Surveys," Land Economics, University of Wisconsin Press, vol. 75(1), pages 126-141.
- Adamowicz W. & Louviere J. & Williams M., 1994. "Combining Revealed and Stated Preference Methods for Valuing Environmental Amenities," Journal of Environmental Economics and Management, Elsevier, vol. 26(3), pages 271-292, May.
- Wim Verbeke & Ronald W. Ward & Jacques Viaene, 2000. "Probit analysis of fresh meat consumption in Belgium: Exploring BSE and television communication impact," Agribusiness, John Wiley & Sons, Ltd., vol. 16(2), pages 215-234.
- Lloyd, Tim & McCorriston, S. & Morgan, C. W. & Rayner, A. J., 2001. "The impact of food scares on price adjustment in the UK beef market," Agricultural Economics, Blackwell, vol. 25(2-3), pages 347-357, September.
- Verbeke, Wim & Ward, Ronald W., 2001. "A fresh meat almost ideal demand system incorporating negative TV press and advertising impact," Agricultural Economics, Blackwell, vol. 25(2-3), pages 359-374, September.
- Barbara J. Kanninen, 1993. "Optimal Experimental Design for Double-Bounded Dichotomous Choice Contingent Valuation," Land Economics, University of Wisconsin Press, vol. 69(2), pages 138-146.
- Latouche, K. & Rainelli, P. & Vermersch, D., 1998. "Food safety issues and the BSE scare: some lessons from the French case," Food Policy, Elsevier, vol. 23(5), pages 347-356, October.
- Maria L. Loureiro & Jill J. McCluskey & Ron C. Mittelhammer, 2003. "Are Stated Preferences Good Predictors of Market Behavior?," Land Economics, University of Wisconsin Press, vol. 79(1), pages 44-45.
- Erikson, Glade R. & Wahl, Thomas I. & Jussaume, Raymond A., Jr. & Shi, Hongqi, 1998. "Product Characteristics Affecting Consumers' Fresh Beef Cut Purchasing Decisions In The United States, Japan, And Australia," Journal of Food Distribution Research, Food Distribution Research Society, vol. 29(3), November.
- Laura O. Taylor & Ronald G. Cummings, 1999. "Unbiased Value Estimates for Environmental Goods: A Cheap Talk Design for the Contingent Valuation Method," American Economic Review, American Economic Association, vol. 89(3), pages 649-665, June.
- Aizaki, Hideo & Sawada, Manabu & Sato, Kazuo & Kikkawa, Toshiko, 2009. "A non-compensatory choice modeling analysis of Japanese consumers’ preferences for beef: A choice experiment approach," 2009 Conference, August 16-22, 2009, Beijing, China 51656, International Association of Agricultural Economists.
- Lee, Sang Hyeon & Lee, Ji Yong & Han, Doo Bong & Nayga, Rodolfo M. Jr, 2013. "Assessing Korean Consumers’ Valuation for BSE Tested and Country of Origin Labeled Beef Products," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 149615, Agricultural and Applied Economics Association.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.