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Do native and invasive labels affect consumer willingness to pay for plants? Evidence from experimental auctions

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  • Chengyan Yue
  • Terrance M. Hurley
  • Neil Anderson

Abstract

The ultimate objective of commercial horticultural activities is to satisfy the needs of the final consumer. Consumer demand for novel plants drives the ornamental plant industry. Therefore, dispersal of native and invasive horticultural plants can be understood by considering the decisions/choices of consumers who decide which plants to purchase from retailers. In contrast to previous studies on invasive and native plants, this study uses an experimental auction to elicit consumers’ willingness to pay (WTP) for labeled native and invasive attributes. Results from a censored random effect model show that consumers’ WTP for plants decreases when the plants are labeled as invasive and increases when plants are labeled as native. The study finds that consumers discount an invasive attribute more for native than for non-native plants. Consumers’ sociodemographics and attitudes—age, income, gender, concern about environment, interest in plant quality, ease of care and sensitivity to price—significantly alter consumer’s WTP for native and invasive attributes. The implications of this study are notable given the consumers’ increasing concern about the environment and recent debate over sustainable labeling of plants by the horticulture industry.

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Bibliographic Info

Article provided by International Association of Agricultural Economists in its journal Agricultural Economics.

Volume (Year): 42 (2011)
Issue (Month): 2 (03)
Pages: 195-205

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Handle: RePEc:bla:agecon:v:42:y:2011:i:2:p:195-205

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  1. Huffman, Wallace E. & Shogren, Jason F. & Rousu, Matthew C. & Tegene, Abebayehu, 2003. "Consumer Willingness to Pay for Genetically Modified Food Labels in a Market with Diverse Information: Evidence from Experimental Auctions," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 28(03), December.
  2. Moffitt, L. Joe & Osteen, Craig D., 2006. "Prioritizing Invasive Species Threats Under Uncertainty," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 35(1), April.
  3. David Lucking-Reiley & John A. List, 2000. "Demand Reduction in Multiunit Auctions: Evidence from a Sportscard Field Experiment," American Economic Review, American Economic Association, vol. 90(4), pages 961-972, September.
  4. Henrik Vetter & Kostas Karantininis, 2002. "Moral hazard, vertical integration, and public monitoring in credence goods," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 29(2), pages 271-279, June.
  5. Alberto Cavaliere, 2000. "Overcompliance and Voluntary Agreements," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 17(2), pages 195-202, October.
  6. Kim, C.S. & Lee, Donna J. & Schaible, Glenn D. & Vasavada, Utpal, 2007. "Multiregional Invasive Species Management: Theory and an Application to Florida's Exotic Plants," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 39(October), October.
  7. Adams, Damian C. & Lee, Donna J. & Bucaram, Santiago & Bwenge, Anafrida N., 2007. "The Impact of Invasive Plants on the Recreational Value of Florida's Coastal, Freshwater and Upland Natural Areas," 2007 Annual Meeting, July 29-August 1, 2007, Portland, Oregon TN 9801, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
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Cited by:
  1. Hurley, Terrance M. & Yue, Chenyan & Anderson, Neil O., 2013. "Polarized Preferences in Homegrown Value Auctions," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 38(2), August.

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