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Applying the payment card approach to estimate the WTP for green food in China

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  • Tian, Xu
  • Yu, Xiaohua
  • Holst, Rainer

Abstract

This paper uses a payment card approach to reveal consumers' willingness to pay for green food in China. We first present a brief introduction of the payment card approach and introduce several methods to estimate the WTP with payment cards, which we subsequently use to estimate WTP values regarding green vegetables, green meat and green eggs in China. Our results indicate that consumers in big cities are willing to pay a higher premium for green food and that WTP values are relatively higher for more expensive food than for cheaper food. In addition, the ratios of premium to price range mainly between 25% and 50% and WTP values obtained from interval midpoint approach are relatively higher than those calculated by other approaches.

Suggested Citation

  • Tian, Xu & Yu, Xiaohua & Holst, Rainer, 2011. "Applying the payment card approach to estimate the WTP for green food in China," IAMO Forum 2011: Will the "BRICs Decade" Continue? – Prospects for Trade and Growth 23, Leibniz Institute of Agricultural Development in Central and Eastern Europe (IAMO).
    • Handle: RePEc:zbw:iamo11:23
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    References listed on IDEAS

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    2. Francesco Riccioli & Roberto Fratini & Claudio Fagarazzi & Mario Cozzi & Mauro Viccaro & Severino Romano & Duccio Rocchini & Salomon Espinosa Diaz & Clara Tattoni, 2020. "Mapping the Recreational Value of Coppices’ Management Systems in Tuscany," Sustainability, MDPI, vol. 12(19), pages 1-18, September.
    3. Wei, Xiaohan & Chen, Xuqi & Gao, Zhifeng & Jensen, Kimberly L. & Yu, Tun-Hsiang & DeLong, Karen L., 2020. "The Reference Price Effect on Willingness-to-Pay Estimates: Evidence from Eco-labeled Food Products," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304573, Agricultural and Applied Economics Association.
    4. Punnaros Pisarn & Man-Keun Kim & Shang-Ho Yang, 2020. "A Potential Sustainable Pathway for Community-Supported Agriculture in Taiwan: The Consumer Perspective in a Farmers’ Market," Sustainability, MDPI, vol. 12(21), pages 1-18, October.
    5. Riccioli, F. & Fratini, R. & Marone, E. & Fagarazzi, C. & Calderisi, M. & Brunialti, G., 2020. "Indicators of sustainable forest management to evaluate the socio-economic functions of coppice in Tuscany, Italy," Socio-Economic Planning Sciences, Elsevier, vol. 70(C).
    6. Bart Neuts, 2020. "Mixed pricing strategies in museums: Examining the potential of voluntary contributions for capturing consumer surplus," Tourism Economics, , vol. 26(1), pages 115-136, February.

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    Keywords

    WTP; Payment card; Green food;
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