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Consumer willingness to pay for food safety: the case of mycotoxins in milk

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  • Sckokai, Paolo
  • Veneziani, Mario
  • Moro, Daniele
  • Castellari, Elena

Abstract

Mycotoxins contamination in food is a serious source of health risks. This paper evaluates the Italian consumers’ perception of the mycotoxins’ risk through their willingness to pay (WTP) for a hypothetical bottle of milk obtained by cows fed with, inter alia, maize certified for the “good practices” (GPs) that reduce this risk. Therefore, a web-based stated choice experiment (SCE) has been carried out involving a representative sample of 973 Italian consumers and the WTP has been measured using the panel data version of a Random Parameters Logit (RPL) model. Results show that Italian consumers are willing to pay a 29% average price premium for “reduced-mycotoxins” milk. This premium increases for consumers between 44 and 54 years of age, who are students, have completed tertiary education, are economically well-off and shop fairly infrequently.

Suggested Citation

  • Sckokai, Paolo & Veneziani, Mario & Moro, Daniele & Castellari, Elena, 2014. "Consumer willingness to pay for food safety: the case of mycotoxins in milk," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), vol. 3(1), pages 1-19, April.
    • Handle: RePEc:ags:aieabj:172416
    DOI: 10.22004/ag.econ.172416
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    Cited by:

    1. Johnson, Nancy L. & Atherstone, Christine & Grace, Delia, 2015. "The potential of farm-level technologies and practices to contribute to reducing consumer exposure to aflatoxins: A theory of change analysis:," IFPRI discussion papers 1452, International Food Policy Research Institute (IFPRI).
    2. Taglioni, Chiara & Cavicchi, Alessio & Torquati, Biancamaria & Scarpa, Riccardo, 2011. "Influence of Brand Equity on Milk Choice: A Choice Experiment Survey," International Journal on Food System Dynamics, International Center for Management, Communication, and Research, vol. 2(3), pages 1-21, December.
    3. Vural, Burçak Müge & Akgüngör, E. Sedef, 2019. "Quantifying the Trade and Welfare Effects of EU Aflatoxin Regulations on the Dried Fruit Industry," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 68(2), June.
    4. Meerza, Syed Imran Ali & Gustafson, Christopher R., 2018. "Consumer Response to Food Fraud," 2018 Annual Meeting, August 5-7, Washington, D.C. 274044, Agricultural and Applied Economics Association.

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    More about this item

    Keywords

    Consumer/Household Economics; Demand and Price Analysis; Food Consumption/Nutrition/Food Safety;
    All these keywords.

    JEL classification:

    • C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis

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