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Analysis of Consumer Preference for Green Tea with Eco-Friendly Certification in China

Author

Listed:
  • Kyungsoo Nam

    (Korea Rural Economic Institute, Naju 58321, Korea)

  • Yiyang Qiao

    (Department of Food and Resource Economics, Korea University, Seoul 02841, Korea)

  • Byeong-il Ahn

    (Department of Food and Resource Economics, Korea University, Seoul 02841, Korea)

Abstract

The eco-friendly certification system is designed to ensure safe agricultural products to consumers while minimizing environmental pollution. However, despite its advantages, it is not widely adopted due to a possible decrease of farmers’ income. In order to provide implication for activating the eco-friendly certification system, this paper examines the attributes of green tea which affect consumers’ preferences and estimates consumers’ willingness to pay (WTP) for the eco-friendly certification in China. A choice experiment survey is employed for data collection, and the random utility model is used to estimate the preference for the certification and quality of green tea. The attribute that yields the highest marginal WTP turns out to be the organic certification for which WTP is $115.9/250 g higher than for no certification. Also, the analytical results indicate that the group with high trust is willing to pay up to $214.6/250 g more for green tea with organic certification compared to the one with no certification. The empirical results suggest that it is important to build the consumers’ awareness and trust toward the certification to activate the eco-friendly certification system.

Suggested Citation

  • Kyungsoo Nam & Yiyang Qiao & Byeong-il Ahn, 2021. "Analysis of Consumer Preference for Green Tea with Eco-Friendly Certification in China," Sustainability, MDPI, vol. 14(1), pages 1-16, December.
  • Handle: RePEc:gam:jsusta:v:14:y:2021:i:1:p:211-:d:711396
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    References listed on IDEAS

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    1. Sin, Youngkwang, 2005. "Priority Analysis of Environment-friendly Agricultural Policy Programs," Journal of Rural Development/Nongchon-Gyeongje, Korea Rural Economic Institute, vol. 28(2), July.
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    Cited by:

    1. Yayan Xie & Yang Su & Feng Li, 2022. "The Evolutionary Game Analysis of Low Carbon Production Behaviour of Farmers, Government and Consumers in Food Safety Source Governance," IJERPH, MDPI, vol. 19(19), pages 1-16, September.

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