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Assessing Korean Consumers’ Valuation for Domestic and Imported Rice: Importance of Country of Origin and Food Miles Information

Author

Listed:
  • Han, Doo Bong
  • Nayga, Rodolfo M., Jr.
  • Lee, Ji Yong
  • Yoon, Jong Min

Abstract

The aim of this paper is to determine Korean consumers’ valuation for domestic rice and imported rice from China and the US. Using revealed preference data from random nth price auction mechanism, our results generally suggest that consumers’ willingness to pay (WTP) for domestic rice is higher than the WTP for imported rice. Results also suggest that while country of origin and food miles information positively influences consumers’ WTP for domestic rice, country of origin information provides higher valuation for domestic rice than food miles information. Country of origin and food miles information has no statistically significant effect on WTP for the imported Chinese rice product but food miles information has a negative effect on WTP for the imported US rice product. Implications of the findings for rice industries for Korea, the US and China are discussed.

Suggested Citation

  • Han, Doo Bong & Nayga, Rodolfo M., Jr. & Lee, Ji Yong & Yoon, Jong Min, 2012. "Assessing Korean Consumers’ Valuation for Domestic and Imported Rice: Importance of Country of Origin and Food Miles Information," 2012 Annual Meeting, February 4-7, 2012, Birmingham, Alabama 119817, Southern Agricultural Economics Association.
    • Handle: RePEc:ags:saea12:119817
    DOI: 10.22004/ag.econ.119817
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    References listed on IDEAS

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    1. Noussair, Charles & Robin, Stephane & Ruffieux, Bernard, 2004. "Revealing consumers' willingness-to-pay: A comparison of the BDM mechanism and the Vickrey auction," Journal of Economic Psychology, Elsevier, vol. 25(6), pages 725-741, December.
    2. Shogren, Jason F. & Margolis, Michael & Koo, Cannon & List, John A., 2001. "A random nth-price auction," Journal of Economic Behavior & Organization, Elsevier, vol. 46(4), pages 409-421, December.
    3. Ji Yong Lee & Doo Bong Han & Rodolfo M. Nayga Jr & Song Soo Lim, 2011. "Valuing traceability of imported beef in Korea: an experimental auction approach," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 55(3), pages 360-373, July.
    4. Ty Feldkamp & Ted C. Schroeder, 2004. "Experimental Auction Procedure: Impact on Valuation of Quality Differentiated Goods," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(2), pages 389-405.
    5. List, John A, 2003. "Using Random nth Price Auctions to Value Non-market Goods and Services," Journal of Regulatory Economics, Springer, vol. 23(2), pages 193-205, March.
    6. Lusk,Jayson L. & Shogren,Jason F., 2007. "Experimental Auctions," Cambridge Books, Cambridge University Press, number 9780521671248.
    7. repec:feb:artefa:0069 is not listed on IDEAS
    8. W. Bruce Traill, 2004. "Effect of information about benefits of biotechnology on consumer acceptance of genetically modified food: evidence from experimental auctions in the United States, England, and France," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 31(2), pages 179-204, June.
    9. repec:ken:wpaper:0601 is not listed on IDEAS
    10. Frode Alfnes, 2009. "Valuing product attributes in Vickrey auctions when market substitutes are available," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 36(2), pages 133-149, June.
    11. David L. Dickinson, 2004. "Negative Values in Vickrey Auctions," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(1), pages 222-235.
    12. Jay R. Corrigan & Matthew C. Rousu, 2006. "The Effect of Initial Endowments in Experimental Auctions," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 88(2), pages 448-457.
    13. Peterson, Hikaru Hanawa & Yoshida, Kentaro, 2004. "Quality Perceptions and Willingness-to-Pay for Imported Rice in Japan," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 36(1), pages 1-18, April.
    14. Peterson, Hikaru Hanawa & Yoshida, Kentaro, 2004. "Quality Perceptions and Willingness-to-Pay for Imported Rice in Japan," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 36(1), pages 123-141, April.
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    Cited by:

    1. Gedikoglu, Haluk & Parcell, Joe L., 2014. "Variation of Consumer Preferences Between Domestic and Imported Food: The Case of Artisan Cheese," Journal of Food Distribution Research, Food Distribution Research Society, vol. 45(2), pages 1-21, July.

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    Keywords

    Agricultural and Food Policy; Demand and Price Analysis; Food Consumption/Nutrition/Food Safety;
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