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Factors affecting purchasing process of digestate: evidence from an economic experiment on Sicilian farmers’ willingness to pay

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  • Gioacchino Pappalardo

    (University of Catania)

  • Roberta Selvaggi

    (University of Catania)

  • Salvatore Bracco

    (University of Catania)

  • Gaetano Chinnici

    (University of Catania)

  • Biagio Pecorino

    (University of Catania)

Abstract

In this study, we evaluate from the perspective of the theory of commitment costs if the level of farmer understanding about digestate attributes could influence the willingness to pay (WTP) for it. For this purpose, we carried out a research on a sample of 223 Sicilian farmers to correlate their WTP for digestate with a set of eight attributes which usually characterise organic soil conditioners. An experimental design was set up so that participants were given different waiting times to decide on their WTP and different levels of information on the attributes of organic soil conditioners. The results highlight a positive WTP, but farmers are strongly influenced by how much information is available on digestate. Without it, farmers’ WTP decreases drastically probably due to phenomena correlated to what economic theory calls commitment costs.

Suggested Citation

  • Gioacchino Pappalardo & Roberta Selvaggi & Salvatore Bracco & Gaetano Chinnici & Biagio Pecorino, 2018. "Factors affecting purchasing process of digestate: evidence from an economic experiment on Sicilian farmers’ willingness to pay," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 6(1), pages 1-12, December.
    • Handle: RePEc:spr:agfoec:v:6:y:2018:i:1:d:10.1186_s40100-018-0111-7
    DOI: 10.1186/s40100-018-0111-7
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    References listed on IDEAS

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    1. Claudia Bazzani & Vincenzina Caputo & Rodolfo M. Nayga JR. & Maurizio Canavari, 2017. "Testing Commitment Cost Theory In Choice Experiments," Economic Inquiry, Western Economic Association International, vol. 55(1), pages 383-396, January.
    2. Jay R. Corrigan & Andreas C. Drichoutis & Jayson L. Lusk & Rodolfo M. Nayga & Matthew C. Rousu, 2012. "Repeated Rounds with Price Feedback in Experimental Auction Valuation: An Adversarial Collaboration," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 94(1), pages 97-115.
    3. Catherine L. Kling & John A. List & Jinhua Zhao, 2013. "A Dynamic Explanation Of The Willingness To Pay And Willingness To Accept Disparity," Economic Inquiry, Western Economic Association International, vol. 51(1), pages 909-921, January.
    4. Jinhua Zhao & Catherine L. Kling, 2004. "Willingness to Pay, Compensating Variation, and the Cost of Commitment," Economic Inquiry, Western Economic Association International, vol. 42(3), pages 503-517, July.
    5. Zhao, Jinhua & Kling, Catherine L., 2001. "A new explanation for the WTP/WTA disparity," Economics Letters, Elsevier, vol. 73(3), pages 293-300, December.
    6. Appel, Franziska & Ostermeyer-Wiethaup, Arlette & Balmann, Alfons, 2016. "Effects of the German Renewable Energy Act on structural change in agriculture – The case of biogas," Utilities Policy, Elsevier, vol. 41(C), pages 172-182.
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    8. William Vickrey, 1961. "Counterspeculation, Auctions, And Competitive Sealed Tenders," Journal of Finance, American Finance Association, vol. 16(1), pages 8-37, March.
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    10. Jiaqi Hou & Mingxiao Li & Xuhui Mao & Yan Hao & Jie Ding & Dongming Liu & Beidou Xi & Hongliang Liu, 2017. "Response of microbial community of organic-matter-impoverished arable soil to long-term application of soil conditioner derived from dynamic rapid fermentation of food waste," PLOS ONE, Public Library of Science, vol. 12(4), pages 1-15, April.
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    Cited by:

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    2. Pappalardo, G. & Selvaggi, R. & Pecorino, B., 2022. "Biomethane production potential in Southern Italy: An empirical approach," Renewable and Sustainable Energy Reviews, Elsevier, vol. 158(C).

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