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Consumer Perceptions of Environmentally Friendly Products in New Foundland and Labrador

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  • Haghiri, Morteza

Abstract

A stated-preference model was specified by a logit model to analyze consumers’ willingness-to-pay a five-per cent premium to purchase environmentally friendly products in Newfoundland and Labrador. Although the industry suffers from insufficient number of certified producers in the region, the findings from the model reflect the existence of potential demands for environmentally friendly products. Results showed that survey respondents were willing to pay at least a five-per cent premium, as they believed pesticide residues would have negative impacts on their health conditions. In addition, being married, higher degree of education, knowledge about new methods of farming practices, such as integrated-pest management, and early adopters in trying newly introduced products were among the factors affecting consumer decisions in paying the premium.

Suggested Citation

  • Haghiri, Morteza, 2011. "Consumer Perceptions of Environmentally Friendly Products in New Foundland and Labrador," Journal of Food Distribution Research, Food Distribution Research Society, vol. 42(2), July.
  • Handle: RePEc:ags:jlofdr:139417
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    File URL: http://purl.umn.edu/139417
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    References listed on IDEAS

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    1. Jill E. Hobbs & DeeVon Bailey & David L. Dickinson & Morteza Haghiri, 2005. "Traceability in the Canadian Red Meat Sector: Do Consumers Care?," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 53(1), pages 47-65, March.
    2. Govindasamy, Ramu & Italia, John, 1999. "Predicting Willingness-To-Pay A Premium For Organically Grown Fresh Produce," Journal of Food Distribution Research, Food Distribution Research Society, vol. 30(2), July.
    3. Boccaletti, Stefano & Nardella, Michele, 2000. "Consumer Willingness To Pay For Pesticide-Free Fresh Fruit And Vegetables In Italy," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association (IFAMA), vol. 3(03).
    4. Erik Magnusson & J. A. L. Cranfield, 2005. "Consumer Demand for Pesticide Free Food Products in Canada: A Probit Analysis," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 53(1), pages 67-81, March.
    5. Bruno Larue & Gale E. West & Carole Gendron & Rémy Lambert, 2004. "Consumer response to functional foods produced by conventional, organic, or genetic manipulation," Agribusiness, John Wiley & Sons, Ltd., vol. 20(2), pages 155-166.
    6. Batte, Marvin T. & Beaverson, Jeremy & Hooker, Neal H. & Haab, Timothy C., 2004. "Customer Willingness To Pay For Multi-Ingredient, Processed Organic Food Products," 2004 Annual meeting, August 1-4, Denver, CO 20194, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
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