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Modeling heterogeneity in consumer preferences for select food safety attributes in China

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Author Info

  • Ortega, David L.
  • Wang, H. Holly
  • Wu, Laping
  • Olynk, Nicole J.

Abstract

Food safety issues often arise from asymmetric information between consumers and suppliers with regards to product-specific attributes. Severe food safety scandals were observed recently in China. These events not only caused direct economic and life losses, but also created distrust in the Chinese food system domestically, as well as internationally. While much attention has focused on the problems plaguing the Chinese government's food inspection system, little research has been dedicated to analyzing Chinese consumers' concerns surrounding food safety. In this paper, we measure consumer preferences for select food safety attributes in pork and take food safety risk perceptions into account. Several choice experiment models, including latent class and random parameters logit, are constructed to capture heterogeneity in consumer preferences. Our results suggest that Chinese consumers have the highest willingness-to-pay for a government certification program, followed by third-party certification, a traceability system, and a product-specific information label. The results of this study call for the direct involvement of the Chinese government in the food safety system. A stricter monitoring system will not only improve consumer well-being in the short-run, but also restore consumers' trust leading to a social welfare increase in the long run.

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Bibliographic Info

Article provided by Elsevier in its journal Food Policy.

Volume (Year): 36 (2011)
Issue (Month): 2 (April)
Pages: 318-324

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Handle: RePEc:eee:jfpoli:v:36:y:2011:i:2:p:318-324

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Web page: http://www.elsevier.com/locate/foodpol

Related research

Keywords: Food safety Choice experiment Willingness-to-pay Risk perceptions Random parameters logit Latent class model;

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References

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Citations

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Cited by:
  1. Glenk, Klaus & Hall, Clare & Liebe, Ulf & Meyerhoff, J├╝rgen, 2012. "Preferences of Scotch malt whisky consumers for changes in pesticide use and origin of barley," Food Policy, Elsevier, vol. 37(6), pages 719-731.
  2. Doherty, Edel & Campbell, Danny, 2011. "Demand for improved food safety and quality: a cross-regional comparison," 85th Annual Conference, April 18-20, 2011, Warwick University, Coventry, UK 108791, Agricultural Economics Society.
  3. Zhao, Li & Gu, Haiying & Yue, Chengyan & Ahlstrom, David, 2013. "Consumer welfare and GM food labeling: A simulation using an adjusted Kumaraswamy distribution," Food Policy, Elsevier, vol. 42(C), pages 58-70.
  4. Lilavanichakul, Apichaya & Boecker, Andreas, 2013. "Consumer Acceptance of a New Traceability Technology: A Discrete Choice Application to Ontario Ginseng," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association (IAMA), vol. 16(4).
  5. Ward, Patrick S. & Ortega, David L. & Spielman, David J. & Singh, Vartika, 2013. "Farmer preferences for drought tolerance in hybrid versus inbred rice: Evidence from Bihar, India:," IFPRI discussion papers 1307, International Food Policy Research Institute (IFPRI).

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