IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v10y2018i11p4003-d179940.html
   My bibliography  Save this article

Consumer Preferences and Welfare Evaluation under Current Food Inspection Measures in China: Evidence from Real Experiment Choice of Rice Labels

Author

Listed:
  • Wenjing Nie

    (College of Humanities and Social Development, Nanjing Agricultural University, Nanjing 210095, China
    Institute of Regional Agriculture, Nanjing Agricultural University, Nanjing 210095, China)

  • David Abler

    (Department of Agricultural Economics, Sociology, and Education, Penn State University, University Park, State College, PA 16802, USA)

  • Liqun Zhu

    (College of Humanities and Social Development, Nanjing Agricultural University, Nanjing 210095, China
    Institute of Regional Agriculture, Nanjing Agricultural University, Nanjing 210095, China)

  • Taiping Li

    (College of Economics and Management, Nanjing Agricultural University, Nanjing 210095, China)

  • Guanghua Lin

    (College of Economics and Management, Nanjing Agricultural University, Nanjing 210095, China)

Abstract

Frequent food quality and safety issues result in various food inspection measures in China, while some are not widely acknowledged by the public and are less efficient. Consumer demand is significant for priority setting in food policy. This study investigates Chinese consumers’ heterogeneous preferences for selected food inspection measures and estimates welfare effects based on willingness-to-pay (WTP) calculation. Rice consumption data from a 2018 nationwide consumer survey designed using the real choice experiment is analyzed by the random parameters logit and the latent class model. The findings reveal that consumers place a high value on government certification, and brand is valuable especially when public management is perceived as weak. However, the insufficient market demand for third-party certification may increase transaction costs due to overlapping functions and consumers’ distrust. Moreover, there should be a need to broaden consumers’ understanding of traceability and grading systems. This study emphasizes the necessity of direct governmental involvement and the existence of unnecessary policy cost.

Suggested Citation

  • Wenjing Nie & David Abler & Liqun Zhu & Taiping Li & Guanghua Lin, 2018. "Consumer Preferences and Welfare Evaluation under Current Food Inspection Measures in China: Evidence from Real Experiment Choice of Rice Labels," Sustainability, MDPI, vol. 10(11), pages 1-15, November.
    • Handle: RePEc:gam:jsusta:v:10:y:2018:i:11:p:4003-:d:179940
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/10/11/4003/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/10/11/4003/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Jerrod M Penn & Wuyang Hu, 2018. "Understanding Hypothetical Bias: An Enhanced Meta-Analysis," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 100(4), pages 1186-1206.
    2. Karen E. Lewis & Carola Grebitus & Gregory Colson & Wuyang Hu, 2017. "German and British Consumer Willingness to Pay for Beef Labeled with Food Safety Attributes," Journal of Agricultural Economics, Wiley Blackwell, vol. 68(2), pages 451-470, June.
    3. Adam Drucker, 2007. "Measuring Heterogeneous Preferences for Cattle Traits among Cattle-Keeping Households in East Africa," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 89(4), pages 1005-1019.
    4. Train,Kenneth E., 2009. "Discrete Choice Methods with Simulation," Cambridge Books, Cambridge University Press, number 9780521766555.
    5. Kelvin J. Lancaster, 1966. "A New Approach to Consumer Theory," Journal of Political Economy, University of Chicago Press, vol. 74(2), pages 132-132.
    6. Kar H. Lim & Wuyang Hu, 2016. "How Local Is Local? A Reflection on Canadian Local Food Labeling Policy from Consumer Preference," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 64(1), pages 71-88, March.
    7. Lusk, Jayson L. & Tonsor, Glynn T. & Schroeder, Ted C. & Hayes, Dermot J., 2018. "Effect of government quality grade labels on consumer demand for pork chops in the short and long run," Food Policy, Elsevier, vol. 77(C), pages 91-102.
    8. Ortega, David L. & Wang, H. Holly & Wu, Laping & Olynk, Nicole J., 2011. "Modeling heterogeneity in consumer preferences for select food safety attributes in China," Food Policy, Elsevier, vol. 36(2), pages 318-324, April.
    9. George A. Akerlof, 1970. "The Market for "Lemons": Quality Uncertainty and the Market Mechanism," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 84(3), pages 488-500.
    10. Jianhua Wang & Jiaye Ge & Yuting Ma, 2018. "Urban Chinese Consumers’ Willingness to Pay for Pork with Certified Labels: A Discrete Choice Experiment," Sustainability, MDPI, vol. 10(3), pages 1-14, February.
    11. John M. Antle, 1996. "Efficient Food Safety Regulation in the Food Manufacturing Sector," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(5), pages 1242-1247.
    12. Azucena Gracia & Maria L. Loureiro & Rodolfo M. Nayga, 2011. "Are Valuations from Nonhypothetical Choice Experiments Different from Those of Experimental Auctions?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 93(5), pages 1358-1373.
    13. Linhai Wu & Lingling Xu & Dian Zhu & Xiaoli Wang, 2012. "Factors Affecting Consumer Willingness to Pay for Certified Traceable Food in Jiangsu Province of China," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 60(3), pages 317-333, September.
    14. Elijah Wolfe & Michael Popp & Claudia Bazzani & Rodolfo M. Nayga & Diana Danforth & Jennie Popp & Pengyin Chen & Han†Seok Seo, 2018. "Consumers’ willingness to pay for edamame with a genetically modified label," Agribusiness, John Wiley & Sons, Ltd., vol. 34(2), pages 283-299, March.
    15. Louviere,Jordan J. & Hensher,David A. & Swait,Joffre D. With contributions by-Name:Adamowicz,Wiktor, 2000. "Stated Choice Methods," Cambridge Books, Cambridge University Press, number 9780521788304.
    16. Shiwen Quan & Yinchu Zeng & Xiaohua Yu & Te Bao, 2018. "WTP for baby milk formula in China: Using attribute nonattendance as a priori information to select attributes in choice experiment," Agribusiness, John Wiley & Sons, Ltd., vol. 34(2), pages 300-320, March.
    17. Loureiro, Maria L. & Umberger, Wendy J., 2007. "A choice experiment model for beef: What US consumer responses tell us about relative preferences for food safety, country-of-origin labeling and traceability," Food Policy, Elsevier, vol. 32(4), pages 496-514, August.
    18. Hensher,David A. & Rose,John M. & Greene,William H., 2015. "Applied Choice Analysis," Cambridge Books, Cambridge University Press, number 9781107465923.
    19. Krinsky, Itzhak & Robb, A Leslie, 1986. "On Approximating the Statistical Properties of Elasticities," The Review of Economics and Statistics, MIT Press, vol. 68(4), pages 715-719, November.
    20. Andreas C. Drichoutis & Achilleas Vassilopoulos & Jayson L. Lusk & Rodolfo M. NaygaJr., 2017. "Consumer preferences for fair labour certification," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 44(3), pages 455-474.
    21. Asche, Frank & Larsen, Thomas A. & Smith, Martin D. & Sogn-Grundvåg, Geir & Young, James A., 2015. "Pricing of eco-labels with retailer heterogeneity," Food Policy, Elsevier, vol. 53(C), pages 82-93.
    22. Allenby, Greg M. & Rossi, Peter E., 1998. "Marketing models of consumer heterogeneity," Journal of Econometrics, Elsevier, vol. 89(1-2), pages 57-78, November.
    23. Kar H. Lim & Wuyang Hu & Leigh J. Maynard & Ellen Goddard, 2014. "A Taste for Safer Beef? How Much Does Consumers’ Perceived Risk Influence Willingness to Pay for Country‐of‐Origin Labeled Beef," Agribusiness, John Wiley & Sons, Ltd., vol. 30(1), pages 17-30, January.
    24. Roselyne Alphonce & Frode Alfnes, 2017. "Eliciting Consumer WTP for Food Characteristics in a Developing Context: Application of Four Valuation Methods in an African Market," Journal of Agricultural Economics, Wiley Blackwell, vol. 68(1), pages 123-142, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Chuanhui Liao & Huang Yu & Weiwei Zhu, 2020. "Perceived Knowledge, Coping Efficacy and Consumer Consumption Changes in Response to Food Recall," Sustainability, MDPI, vol. 12(7), pages 1-19, March.
    2. Nie, Wenjing & Li, Taiping & Zhu, Liqun, 2020. "Market demand and government regulation for quality grading system of agricultural products in China," Journal of Retailing and Consumer Services, Elsevier, vol. 56(C).
    3. Jiawen Chen & Linlin Liu, 2018. "Profiting from Green Innovation: The Moderating Effect of Competitive Strategy," Sustainability, MDPI, vol. 11(1), pages 1-23, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Wang, Shuxian & Wu, Linhai & Zhu, Dian & Wang, Hongsha & Xu, Lingling, 2014. "Chinese consumers’ preferences and willingness to pay for traceable food attributes: The case of pork," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 165639, Agricultural and Applied Economics Association.
    2. Wu, Linhai & Wang, Shuxian & Zhu, Dian & Hu, Wuyang & Wang, Hongsha, 2015. "Chinese consumers’ preferences and willingness to pay for traceable food quality and safety attributes: The case of pork," China Economic Review, Elsevier, vol. 35(C), pages 121-136.
    3. Nie, Wenjing & Abler, David & Li, Taiping, 2021. "Grading attribute selection of China's grading system for agricultural products: What attributes benefit consumers more?," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 93(C).
    4. Domenico Carlucci & Biagia De Devitiis & Gianluca Nardone & Fabio Gaetano Santeramo, 2017. "Certification Labels Versus Convenience Formats: What Drives the Market in Aquaculture Products?," Marine Resource Economics, University of Chicago Press, vol. 32(3), pages 295-310.
    5. Lin Bai & Zhanguo Zhu & Tong Zhang, 2021. "How to Improve Food Quality in the Domestic Market: The Role of “Same Line Same Standard Same Quality”—Evidence from a Consumer Choice Experiment in China," Sustainability, MDPI, vol. 13(10), pages 1-16, May.
    6. Carlucci, Domenico & Dedevitiis, Biagia & Nardone, Gianluca & Santeramo, Fabio Gaetano, 2016. "Certification Labels Vs Convenience Formats: What drives the market in aquaculture products?," MPRA Paper 75448, University Library of Munich, Germany.
    7. Ortega, David L. & Wang, H. Holly & Wu, Laping & Hong, Soo Jeong, 2015. "Retail channel and consumer demand for food quality in China," China Economic Review, Elsevier, vol. 36(C), pages 359-366.
    8. 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.
    9. Jianhua Wang & Jiaye Ge & Yuting Ma, 2018. "Urban Chinese Consumers’ Willingness to Pay for Pork with Certified Labels: A Discrete Choice Experiment," Sustainability, MDPI, vol. 10(3), pages 1-14, February.
    10. Tamaki Kitagawa & Kenichi Kashiwagi & Hiroko Isoda, 2020. "Effect of Religious and Cultural Information of Olive Oil on Consumer Behavior: Evidence from Japan," Sustainability, MDPI, vol. 12(3), pages 1-17, January.
    11. Ochs, Dan & Wolf, Christopher A. & Widmar, Nicole Olynk & Bir, Courtney & Lai, John, 2019. "Hen housing system information effects on U.S. egg demand," Food Policy, Elsevier, vol. 87(C), pages 1-1.
    12. Carnegie, Rachel & Wang, Holly & Widmar, Nicole & Ortega, David, 2014. "Consumer Preferences for Quality and Safety Attributes of Duck in Restaurant Entrees: Is China A Viable Market for The U.S. Duck Industry?," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 170717, Agricultural and Applied Economics Association.
    13. Tonsor, Glynn T. & Olynk, Nicole & Wolf, Christopher, 2009. "Consumer Preferences for Animal Welfare Attributes: The Case of Gestation Crates," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 41(3), pages 713-730, December.
    14. Rombach, Meike & Widmar, Nicole Olynk & Byrd, Elizabeth & Bitsch, Vera, 2018. "Do all roses smell equally sweet? Willingness to pay for flower attributes in specialized retail settings by German consumers," Journal of Retailing and Consumer Services, Elsevier, vol. 40(C), pages 91-99.
    15. Sarfo, Yaw & Musshoff, Oliver & Weber, Ron & Danne, Michael, 2021. "Farmers’ Willingness to Pay for Digital Credit: Evidence from a Discrete Choice Experiment in Madagascar," 2021 Conference, August 17-31, 2021, Virtual 315029, International Association of Agricultural Economists.
    16. Shijiu Yin & Shanshan Lv & Yusheng Chen & Linhai Wu & Mo Chen & Jiang Yan, 2018. "Consumer preference for infant milk‐based formula with select food safety information attributes: Evidence from a choice experiment in China," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 66(4), pages 557-569, December.
    17. Giacomo Giannoccaro & Ruggiero Sardaro & Rossella de Vito & Luigi Roselli & Bernardo C. de Gennaro, 2020. "Politiche di gestione della risorsa idrica sotterranea a fini irrigui. Analisi delle preferenze degli agricoltori," Economia agro-alimentare, FrancoAngeli Editore, vol. 22(2), pages 1-27.
    18. Linhai Wu & Xiaolin Liu & Dian Zhu & Hongsha Wang & Shuxian Wang & Lingling Xu, 2015. "Simulation of Market Demand for Traceable Pork with Different Levels of Safety Information: A Case Study in Chinese Consumers," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 63(4), pages 513-537, December.
    19. Faical Akaichi & Klaus Glenk & Cesar Revoredo‐Giha, 2022. "Bundling food labels: What role could the labels “Organic,” “Local” and “Low Fat” play in fostering the demand for animal‐friendly meat," Agribusiness, John Wiley & Sons, Ltd., vol. 38(2), pages 349-370, April.
    20. David L. Ortega & H. Holly Wang & Nicole J. Olynk Widmar, 2014. "Aquaculture imports from Asia: an analysis of U.S. consumer demand for select food quality attributes," Agricultural Economics, International Association of Agricultural Economists, vol. 45(5), pages 625-634, September.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:10:y:2018:i:11:p:4003-:d:179940. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.