IDEAS home Printed from https://ideas.repec.org/a/gam/jijerp/v19y2022i15p8946-d869660.html
   My bibliography  Save this article

Consumers’ Willingness to Pay for Rice from Remediated Soil: Potential from the Public in Sustainable Soil Pollution Treatment

Author

Listed:
  • H. Holly Wang

    (School of Public Affairs and China Academy of Rural Development (CARD), Zhejiang University, 866 Yuhangtang Road, Hangzhou 310058, China
    Department of Agricultural Economics, Purdue University, 403 West State Street, West Lafayette, IN 47907, USA)

  • Jing Yang

    (School of Public Affairs and China Academy of Rural Development (CARD), Zhejiang University, 866 Yuhangtang Road, Hangzhou 310058, China)

  • Na Hao

    (Department of Economics, Beijing Technology and Business University, Fucheng Road #33, Beijing 100048, China)

Abstract

Remediation of polluted soil on arable land is mostly funded by governments, with the understanding that the public’s willingness to pay for food produced on remediated soil can help establish a soil remediation model with more stakeholders. In contrast to previous studies that have focused on soil-remediation technologies’ diffusion, this study employs choice experiments to evaluate market preferences for crops grown from lands of varying quality that are reflected in consumers’ willingness to pay (WTP). The results show that consumers are willing to pay a small premium for rice labeled with remediated-soil claims, but the WTP for remediated-soil claim is less than that of an uncontaminated-soil claim. Consumers’ WTP for remediated-soil claim increases by 29.03% when combining with a well-known brand, and it increases by 71.17% when information is provided about the efficacy of cadmium and heavy-metal-pollution remediation; however, combining with the region-of-origin label does not increase WTP. We also find that, in early stages of promotion, online stores may reach target consumers more easily. Based on these results, we propose four implications for policymakers.

Suggested Citation

  • H. Holly Wang & Jing Yang & Na Hao, 2022. "Consumers’ Willingness to Pay for Rice from Remediated Soil: Potential from the Public in Sustainable Soil Pollution Treatment," IJERPH, MDPI, vol. 19(15), pages 1-22, July.
  • Handle: RePEc:gam:jijerp:v:19:y:2022:i:15:p:8946-:d:869660
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1660-4601/19/15/8946/pdf
    Download Restriction: no

    File URL: https://www.mdpi.com/1660-4601/19/15/8946/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Marette, Stéphan & Roosen, Jutta & Blanchemanche, Sandrine & Feinblatt-Mélèze, Eve, 2010. "Functional food, uncertainty and consumers' choices: A lab experiment with enriched yoghurts for lowering cholesterol," Food Policy, Elsevier, vol. 35(5), pages 419-428, October.
    2. Hartmann, Patrick & Apaolaza Ibanez, Vanessa, 2007. "Managing customer loyalty in liberalized residential energy markets: The impact of energy branding," Energy Policy, Elsevier, vol. 35(4), pages 2661-2672, April.
    3. Wongprawmas, Rungsaran & Canavari, Maurizio, 2017. "Consumers’ willingness-to-pay for food safety labels in an emerging market: The case of fresh produce in Thailand," Food Policy, Elsevier, vol. 69(C), pages 25-34.
    4. Fox, John A & Hayes, Dermot J & Shogren, Jason F, 2002. "Consumer Preferences for Food Irradiation: How Favorable and Unfavorable Descriptions Affect Preferences for Irradiated Pork in Experimental Auctions," Journal of Risk and Uncertainty, Springer, vol. 24(1), pages 75-95, January.
    5. Douadia Bougherara & Pierre Combris, 2009. "Eco-labelled food products: what are consumers paying for?," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 36(3), pages 321-341, September.
    6. repec:cup:judgdm:v:10:y:2015:i:1:p:50-63 is not listed on IDEAS
    7. Yunyang Xiao & H. Holly Wang & Jun Li, 2021. "A New Market for Pet Food in China: Online Consumer Preferences and Consumption," Chinese Economy, Taylor & Francis Journals, vol. 54(6), pages 430-440, November.
    8. Hang Zhou & Wen-Tao Yang & Xin Zhou & Li Liu & Jiao-Feng Gu & Wen-Lei Wang & Jia-Ling Zou & Tao Tian & Pei-Qin Peng & Bo-Han Liao, 2016. "Accumulation of Heavy Metals in Vegetable Species Planted in Contaminated Soils and the Health Risk Assessment," IJERPH, MDPI, vol. 13(3), pages 1-12, March.
    9. Celine Michaud & Daniel Llerena & Iragael Joly, 2013. "Willingness to pay for environmental attributes of non-food agricultural products: a real choice experiment," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 40(2), pages 313-329, March.
    10. Ortega, David L. & Wang, H. Holly & Wu, Laping & Olynk, Nicole J., 2011. "Modeling heterogeneity in consumer preferences for select food safety attributes in China," Food Policy, Elsevier, vol. 36(2), pages 318-324, April.
    11. Justin P. Johnson & David P. Myatt, 2006. "On the Simple Economics of Advertising, Marketing, and Product Design," American Economic Review, American Economic Association, vol. 96(3), pages 756-784, June.
    12. Daniel N. Gilmour & Claudia Bazzani & Rodolfo M. Nayga & Heather A. Snell, 2019. "Do consumers value hydroponics? Implications for organic certification," Agricultural Economics, International Association of Agricultural Economists, vol. 50(6), pages 707-721, November.
    13. Ward, Patrick S. & Bell, Andrew R. & Droppelmann, Klaus & Benton, Tim G., 2018. "Early adoption of conservation agriculture practices: Understanding partial compliance in programs with multiple adoption decisions," Land Use Policy, Elsevier, vol. 70(C), pages 27-37.
    14. Nakarado, Gary L, 1996. "A marketing orientation is the key to a sustainable energy future," Energy Policy, Elsevier, vol. 24(2), pages 187-193, February.
    15. Whiting, Alix & Kecinski, Maik & Li, Tongzhe & r, Kent D. Messer & Parker, Julia, 2019. "The importance of selecting the right messenger: A framed field experiment on recycled water products," Ecological Economics, Elsevier, vol. 161(C), pages 1-8.
    16. Antle, John M., 2001. "Economic analysis of food safety," Handbook of Agricultural Economics, in: B. L. Gardner & G. C. Rausser (ed.), Handbook of Agricultural Economics, edition 1, volume 1, chapter 19, pages 1083-1136, Elsevier.
    17. Nadine E. van der Waal & Frans Folkvord & Rachid Azrout & Corine S. Meppelink, 2022. "Can Product Information Steer towards Sustainable and Healthy Food Choices? A Pilot Study in an Online Supermarket," IJERPH, MDPI, vol. 19(3), pages 1-17, January.
    18. Vincenzina Caputo, 2020. "Does information on food safety affect consumers' acceptance of new food technologies? The case of irradiated beef in South Korea under a new labelling system and across different information regimes," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 64(4), pages 1003-1033, October.
    19. Savchenko, Olesya M. & Kecinski, Maik & Li, Tongzhe & Messer, Kent D. & Xu, Huidong, 2018. "Fresh foods irrigated with recycled water: A framed field experiment on consumer responses," Food Policy, Elsevier, vol. 80(C), pages 103-112.
    20. 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.
    21. Louviere,Jordan J. & Hensher,David A. & Swait,Joffre D. With contributions by-Name:Adamowicz,Wiktor, 2000. "Stated Choice Methods," Cambridge Books, Cambridge University Press, number 9780521788304.
    22. Valerie Kilders & Vincenzina Caputo, 2021. "Is Animal Welfare Promoting Hornless Cattle? Assessing Consumer’s Valuation for Milk from Gene‐edited Cows under Different Information Regimes," Journal of Agricultural Economics, Wiley Blackwell, vol. 72(3), pages 735-759, September.
    23. McFadden, Jonathan R. & Huffman, Wallace E., 2017. "Consumer valuation of information about food safety achieved using biotechnology: Evidence from new potato products," Food Policy, Elsevier, vol. 69(C), pages 82-96.
    24. Grunert, Klaus G. & Hieke, Sophie & Wills, Josephine, 2014. "Sustainability labels on food products: Consumer motivation, understanding and use," Food Policy, Elsevier, vol. 44(C), pages 177-189.
    25. Stamatios Christopoulos & Balazs Horvath & Michael Kull, 2012. "Advancing The Governance Of Cross‐Sectoral Policies For Sustainable Development: A Metagovernance Perspective," Public Administration & Development, Blackwell Publishing, vol. 32(3), pages 305-323, August.
    26. Yu Jiang & H. Holly Wang & Shaosheng Jin & Michael S. Delgado, 2019. "The Promising Effect of a Green Food Label in the New Online Market," Sustainability, MDPI, vol. 11(3), pages 1-14, February.
    27. Yu, Zhenning & Yao, Lan & Wu, Mengya, 2020. "Farmers’ attitude towards the policy of remediation during fallow in soil fertility declining and heavy metal polluted area of China," Land Use Policy, Elsevier, vol. 97(C).
    28. Zhou, Jiehong & Liu, Qing & Mao, Rui & Yu, Xiaohua, 2017. "Habit spillovers or induced awareness: Willingness to pay for eco-labels of rice in China," Food Policy, Elsevier, vol. 71(C), pages 62-73.
    29. Moussa P. Blimpo, 2014. "Team Incentives for Education in Developing Countries: A Randomized Field Experiment in Benin," American Economic Journal: Applied Economics, American Economic Association, vol. 6(4), pages 90-109, October.
    30. Ortega, David L. & Chen, Maolong & Wang, H. Holly & Shimokawa, Satoru, 2017. "Emerging Markets for U.S. Pork in China: Experimental Evidence from Mainland and Hong Kong Consumers," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 42(2), May.
    31. Ahmad, Naveed & Zhu, Yuming & Hongli, Lin & Karamat, Jawad & Waqas, Muhammad & Taskheer Mumtaz, Syed Muhammad, 2020. "Mapping the obstacles to brownfield redevelopment adoption in developing economies: Pakistani Perspective," Land Use Policy, Elsevier, vol. 91(C).
    32. Songtao Xu & Zhifang Zhou & Ke Liu, 2020. "Multi-Evolutionary Game Research on Heavy Metal Pollution Control in Soil: Based on a Third-Party Perspective," Sustainability, MDPI, vol. 12(13), pages 1-20, June.
    33. Charles Noussair & StÈphane Robin & Bernard Ruffieux, 2004. "Do Consumers Really Refuse To Buy Genetically Modified Food?," Economic Journal, Royal Economic Society, vol. 114(492), pages 102-120, January.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Zhu, Zhanguo & Zhang, Tong & Hu, Wuyang, 2023. "The accumulation and substitution effects of multi-nation certified organic and protected eco-origin food labels in China," Ecological Economics, Elsevier, vol. 203(C).
    2. Lin Bai & Zhanguo Zhu & Tong Zhang, 2021. "How to Improve Food Quality in the Domestic Market: The Role of “Same Line Same Standard Same Quality”—Evidence from a Consumer Choice Experiment in China," Sustainability, MDPI, vol. 13(10), pages 1-16, May.
    3. Ding, Ye & Nayga Jr, Rodolfo M. & Zeng, Yinchu & Yang, Wei & Arielle Snell, Heather, 2022. "Consumers’ valuation of a live video feed in restaurant kitchens for online food delivery service," Food Policy, Elsevier, vol. 112(C).
    4. Yokessa, Maïmouna & Marette, Stéphan, 2019. "A Review of Eco-labels and their Economic Impact," International Review of Environmental and Resource Economics, now publishers, vol. 13(1-2), pages 119-163, April.
    5. Britwum, Kofi & Yiannaka, Amalia, 2019. "Consumer willingness to pay for food safety interventions: The role of message framing and issue involvement," Food Policy, Elsevier, vol. 86(C), pages 1-1.
    6. Van Loo, Ellen J. & Caputo, Vincenzina & Lusk, Jayson L., 2020. "Consumer preferences for farm-raised meat, lab-grown meat, and plant-based meat alternatives: Does information or brand matter?," Food Policy, Elsevier, vol. 95(C).
    7. Bruner, David M. & Huth, William L. & McEvoy, David M. & Morgan, O. Ashton, 2014. "Consumer Valuation of Food Safety: The Case of Postharvest Processed Oysters," Agricultural and Resource Economics Review, Cambridge University Press, vol. 43(2), pages 300-318, August.
    8. David M. Bruner & William L. Huth & David M. McEvoy & O. Ashton Morgan, 2011. "Accounting for Taste: Consumer Valuations for Food-Safety Technologies," Working Papers 11-09, Department of Economics, Appalachian State University.
    9. Liaukonyte, Jura & Streletskaya, Nadia A. & Kaiser, Harry M., 2015. "Noisy Information Signals and Endogenous Preferences for Labeled Attributes," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 40(2), pages 1-24, May.
    10. Rihn, Alicia & Wei, Xuan & Khachatryan, Hayk, 2019. "Text vs. logo: Does eco-label format influence consumers’ visual attention and willingness-to-pay for fruit plants? An experimental auction approach," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 82(C).
    11. Yu Jiang & H. Holly Wang & Shaosheng Jin, 2023. "Mobilising the public to fight poverty using anti‐poverty labels in online food markets: Evidence from a real experimental auction," Journal of Agricultural Economics, Wiley Blackwell, vol. 74(1), pages 168-190, February.
    12. Caputo, Vincenzina & Scarpa, Riccardo & Nayga, Rodolfo M. & Ortega, David L., 2018. "Are preferences for food quality attributes really normally distributed? An analysis using flexible mixing distributions," Journal of choice modelling, Elsevier, vol. 28(C), pages 10-27.
    13. Santeramo, Fabio Gaetano & Lamonaca, Emilia, 2020. "Objective risk and subjective risk: The role of information in food supply chains," MPRA Paper 104515, University Library of Munich, Germany.
    14. Colson, Gregory & Huffman, Wallace E. & Rousu, Matthew C., 2011. "Improving the Nutrient Content of Food through Genetic Modification: Evidence from Experimental Auctions on Consumer Acceptance," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 36(2), pages 1-22, August.
    15. Sean F. Ellis & Maik Kecinski & Kent D. Messer & Clive Lipchin, 2022. "Consumer perceptions after long‐term use of alternative irrigation water: A field experiment in Israel," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 44(2), pages 1003-1020, June.
    16. Lusk Jayson L & Alexander Corinne & Rousu Matthew C., 2007. "Designing Experimental Auctions for Marketing Research: The Effect of Values, Distributions, and Mechanisms on Incentives for Truthful Bidding," Review of Marketing Science, De Gruyter, vol. 5(1), pages 1-32, October.
    17. Mika Kortelainen & Jibonayan Raychaudhuri & Beatrice Roussillon, 2016. "Effects Of Carbon Reduction Labels: Evidence From Scanner Data," Economic Inquiry, Western Economic Association International, vol. 54(2), pages 1167-1187, April.
    18. Qing Liu & Zhen Yan & Jiehong Zhou, 2017. "Consumer Choices and Motives for Eco-Labeled Products in China: An Empirical Analysis Based on the Choice Experiment," Sustainability, MDPI, vol. 9(3), pages 1-12, February.
    19. Rousu, Matthew C. & Monchuk, Daniel C. & Shogren, Jason F. & Kosa, Katherine M., 2005. "Consumer Willingness to Pay for "Second-Generation" Genetically Engineered Products and the Role of Marketing Information," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 37(3), pages 1-11, December.
    20. Van Asselt, Joanna & Nian, Yefan & Soh, Moonwon & Gao, Zhifeng & Morgan, Stephen N, 2020. "Do Plastic Warning Labels Reduce Consumers’ Willingness to Pay for Plastic Packaging?," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304503, Agricultural and Applied Economics Association.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jijerp:v:19:y:2022:i:15:p:8946-:d:869660. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.