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Consumer's WTP for Environment-Friendly Production Methods and Collective Reputation for Place of Origin: The Case of Val di Gresta's Carrots

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  • Scarpa, Riccardo
  • Thiene, Mara
  • Marangon, Francesco

Abstract

This paper investigates preferences for various environment-friendly production system for carrots using discretechoice multi-attribute stated-preference data amongst buyers and explore the effect of collective reputations from growers of an Alpine valley known to be completely dedicated to organic production. Results show that buyers distinctly recognize only organic production as a production system different from the conventional one, and there is some evidence of recognition of collective reputation. As well as for marginal utility of income, substantial unobserved heterogeneity is found for many skin imperfections, origin from the organic Alpine valley and the organic production methods. The implied sample distributions of WTP for each of these random attributes are then compared.

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Bibliographic Info

Paper provided by International Association of Agricultural Economists in its series 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia with number 25637.

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Date of creation: 2006
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Handle: RePEc:ags:iaae06:25637

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Related research

Keywords: Choice modelling; mixed logit; organic products; marginal utility of income; unobserved taste heterogeneity; status-quo bias; heteroskedasticity; Crop Production/Industries; Environmental Economics and Policy; C15; C25; Q13; Q18;

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References

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  1. Ramu Govindasamy & John Italia, 1998. "A willingness-to-purchase comparison of integrated pest management and conventional produce," Agribusiness, John Wiley & Sons, Ltd., vol. 14(5), pages 403-414.
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  4. Zanoli, Raffaele & Naspetti, Simona, 2002. "Consumer motivations in the purchase of organic food. A means-end approach," MPRA Paper 32712, University Library of Munich, Germany.
  5. DeShazo, J. R. & Fermo, German, 2002. "Designing Choice Sets for Stated Preference Methods: The Effects of Complexity on Choice Consistency," Journal of Environmental Economics and Management, Elsevier, vol. 44(1), pages 123-143, July.
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  9. Jason A. Winfree & Jill J. McCluskey, 2005. "Collective Reputation and Quality," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 87(1), pages 206-213.
  10. Eliza M. Mojduszka & Julie A. Caswell & J. Michael Harris, 2001. "Consumer choice of food products and the implications for price competition and government policy," Agribusiness, John Wiley & Sons, Ltd., vol. 17(1), pages 81-104.
  11. Train, K. & Weeks, M., 2004. "Discrete Choice Models in Preference Space and Willingness-to Pay Space," Cambridge Working Papers in Economics 0443, Faculty of Economics, University of Cambridge.
  12. Scarpa, Riccardo & Ruto, Eric S. K. & Kristjanson, Patti & Radeny, Maren & Drucker, Adam G. & Rege, John E. O., 2003. "Valuing indigenous cattle breeds in Kenya: an empirical comparison of stated and revealed preference value estimates," Ecological Economics, Elsevier, vol. 45(3), pages 409-426, July.
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  14. Cuyno, Leah C.M. & Norton, George W. & Rola, Agnes, 2001. "Economic analysis of environmental benefits of integrated pest management: a Philippine case study," Agricultural Economics: The Journal of the International Association of Agricultural Economists, International Association of Agricultural Economists, vol. 25(2-3), September.
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Cited by:
  1. Pozo, Veronica F. & Saak, Alexander E. & Hanawa-Peterson, Hikaru, 2009. "Product Origin and Reputation for Quality: the Case of Organic Foods," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 49503, Agricultural and Applied Economics Association.

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