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Bovine spongiform encephalopathy in Japan: consumers' food safety perceptions and willingness to pay for tested beef

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  • Jill J. McCluskey
  • Kristine M. Grimsrud
  • Hiromi Ouchi
  • Thomas I. Wahl

Abstract

The 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. Copyright 2005 Australian Agricultural and Resource Economics Society Inc. and Blackwell Publishing Asia Pty Ltd..

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Bibliographic Info

Article provided by Australian Agricultural and Resource Economics Society in its journal The Australian Journal of Agricultural and Resource Economics.

Volume (Year): 49 (2005)
Issue (Month): 2 (06)
Pages: 197-209

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Handle: RePEc:bla:ajarec:v:49:y:2005:i:2:p:197-209

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Cited by:
  1. Kawashima, Shigekazu & Sari, Deffi Ayu Puspito, 2010. "Time-varying Armington elasticity and country-of-origin bias: from the dynamic perspective of the Japanese demand for beef imports," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 54(1), March.
  2. Moonsoo Park & Yanhong H. Jin & David A. Bessler, 2008. "The impacts of animal disease crises on the Korean meat market," Agricultural Economics, International Association of Agricultural Economists, vol. 39(2), pages 183-195, 09.
  3. Caswell, Julie & Joseph, Siny, 2007. "Consumer Demand for Quality: Major Determinant for Agricultural and Food Trade in the Future?," Research Reports 149196, University of Connecticut, Food Marketing Policy Center.
  4. Corsi, Alessandro, 2012. "Willingness-to-pay in terms of price: an application to organic beef during and after the “mad cow” crisis," Revue d'Etudes en Agriculture et Environnement, Editions NecPlus, vol. 92(01), pages 25-46, October.
  5. Ding, Yulian & Veeman, Michele M. & Adamowicz, Wiktor L., 2009. "BSE and the Dynamics of Beef Consumption: Influences of Habit and Trust," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 49284, Agricultural and Applied Economics Association.
  6. Shepherd, Jonathan D. & Saghaian, Sayed H., 2008. "Consumer Response to Food Safety Events: An Interaction Between Risk Perception and Trust of Information in the Chicken and Beef Markets," 2008 Annual Meeting, February 2-6, 2008, Dallas, Texas 6822, Southern Agricultural Economics Association.

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