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Consumer Willingness To Pay For Pesticide-Free Fresh Produce

Author

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  • Misra, Sukant K.
  • Huang, Chung L.
  • Ott, Stephen L.

Abstract

The study uses primary data collected from a survey conducted in Georgia to analyze consumer preferences for testing and certification of fresh produce and consumers' willingness to pay for fresh produce that is certified as free of pesticide residues (FPR). An ordered probit model was estimated to identify the impacts of various exogenous variables on the probability of consumers' willingness to pay for a number of alternative price premiums. The results indicate that consumers' willingness to pay differs with respect to a number of factors. The study concludes that most of the consumers recommend testing and certification, but they oppose large price markups for certified-FPR fresh produce.

Suggested Citation

  • Misra, Sukant K. & Huang, Chung L. & Ott, Stephen L., 1991. "Consumer Willingness To Pay For Pesticide-Free Fresh Produce," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 16(2), pages 1-10, December.
    • Handle: RePEc:ags:wjagec:32604
    DOI: 10.22004/ag.econ.32604
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    References listed on IDEAS

    as
    1. David G. Swartz & Ivar E. Strand, Jr., 1981. "Avoidance Costs Associated with Imperfect Information: The Case of Kepone," Land Economics, University of Wisconsin Press, vol. 57(2), pages 139-150.
    2. Schertz, Lyle P., 1990. "Farm Policy in the 1990's: An Interview with Clayton Yuetter, U.S. Secretary of Agriculture," Choices: The Magazine of Food, Farm, and Resource Issues, Agricultural and Applied Economics Association, vol. 5(01), pages 1-5.
    3. John W. Malone, 1990. "Consumer willingness to purchase and to pay more for potential benefits of irradiated fresh food products," Agribusiness, John Wiley & Sons, Ltd., vol. 6(2), pages 163-178.
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