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Are Consumers in Developing Countries Willing to Pay More for Micronutrient-Dense Biofortified Foods? Evidence from a Field Experiment in Uganda

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  • Shyamal Chowdhury
  • J. V. Meenakshi
  • Keith I. Tomlins
  • Constance Owori

Abstract

Vitamin A deficiency is a major health problem in Africa and in many other developing countries. Biofortified staple crops that are high in pro-vitamin A have the potential to reduce the prevalence of vitamin A deficiency. Using a choice experiment with the real product in Uganda, we quantify the magnitude of the premium or discount in consumers' willingness-to-pay (WTP) that may be associated with it. Results suggest that taste plays an important role in consumer acceptance, and the provision of nutrition information does translate into substantial premiums for the biofortified variety. There is a substantial hypothetical bias in the WTP for the new varieties, and while cheap talk mitigates this bias, it does not eliminate it. Copyright 2010, Oxford University Press.

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Bibliographic Info

Article provided by Agricultural and Applied Economics Association in its journal American Journal of Agricultural Economics.

Volume (Year): 93 (2010)
Issue (Month): 1 ()
Pages: 83-97

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Handle: RePEc:oup:ajagec:v:93:y:2010:i:1:p:83-97

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  1. Laura O. Taylor & Ronald G. Cummings, 1999. "Unbiased Value Estimates for Environmental Goods: A Cheap Talk Design for the Contingent Valuation Method," American Economic Review, American Economic Association, vol. 89(3), pages 649-665, June.
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Cited by:
  1. Birol, Ekin & Asare-Marfo, Dorene & Karandikar,Bhushana & Roy, Devesh, 2011. "A latent class approach to investigating farmer demand for biofortified staple food crops in developing countries: The case of high-iron pearl millet in Maharashtra, India," HarvestPlus Working Papers 7, International Food Policy Research Institute (IFPRI).
  2. Moser, Riccarda & Raffaelli, Roberta & Notaro, Sandra, 2010. "The Role Of Production Methods In Fruit Purchasing Behaviour: Hypothetical Vs Actual Consumers’ Preferences And Stated Minimum Requirements," 115th Joint EAAE/AAEA Seminar, September 15-17, 2010, Freising-Weihenstephan, Germany 116426, European Association of Agricultural Economists & Agricultural and Applied Economics Association.

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