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Willingness to pay for rBST-free milk: a two-limit Tobit model analysis


  • Qingbin Wang
  • Catherine Halbrendt
  • Jane Kolodinsky
  • Fred Schmidt


The labelling of dairy products containing milk from rBST-treated cows has rapidly emerged as an important issue in the US due to the controversy between state and federal legislation and between consumer and industrial groups. This paper evaluates consumer willingness to pay (WTP) for rBST-free milk using data collected from a consumer survey. Estimation results of a two-limit Tobit model suggest that a majority of consumers are willing to pay a premium for rBST-free milk and the WTP is affected by several sociodemographic factors such as income and attitudes toward the use of rBST.

Suggested Citation

  • Qingbin Wang & Catherine Halbrendt & Jane Kolodinsky & Fred Schmidt, 1997. "Willingness to pay for rBST-free milk: a two-limit Tobit model analysis," Applied Economics Letters, Taylor & Francis Journals, vol. 4(10), pages 619-621.
  • Handle: RePEc:taf:apeclt:v:4:y:1997:i:10:p:619-621
    DOI: 10.1080/758533286

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    References listed on IDEAS

    1. Elnagheeb, Abdelmoneim H. & Florkowski, Wojciech J. & Huang, Chung-Liang & Halbrendt, Catherine, 1992. "Willingness to pay for pST-treated pork," Agricultural Economics, Blackwell, vol. 8(1), pages 45-56, December.
    2. Wojciech J. Florkowski & Catherine Halbrendt & Chung L. Huang & Lesa Sterling, 1994. "Socioeconomic Determinants of Attitudes Toward Bioengineered Products," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 16(1), pages 125-132.
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    Cited by:

    1. Zhifeng Gao & Ted C. Schroeder, 2009. "Consumer responses to new food quality information: are some consumers more sensitive than others?," Agricultural Economics, International Association of Agricultural Economists, vol. 40(3), pages 339-346, May.
    2. Fan Yang & Brenda Gannon & Andrew Weightman, 2018. "Public’s Willingness to Pay Towards a Medical Device for Detecting Foot Ulceration in People with Diabetes," Applied Health Economics and Health Policy, Springer, vol. 16(4), pages 559-567, August.
    3. Wang, Lei, 2018. "High-speed rail services development and regional accessibility restructuring in megaregions: A case of the Yangtze River Delta, China," Transport Policy, Elsevier, vol. 72(C), pages 34-44.
    4. Sun, Shaoyan & An, Henry, 2013. "Reputation and Multiproduct-firm Behavior: Product Line and Price Rivalry Among Retailers," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 151146, Agricultural and Applied Economics Association.
    5. Kofi Britwum & Amalia Yiannaka, 2019. "Labeling food safety attributes: to inform or not to inform?," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 7(1), pages 1-21, December.
    6. Dannenberg, Astrid, 2009. "The dispersion and development of consumer preferences for genetically modified food -- A meta-analysis," Ecological Economics, Elsevier, vol. 68(8-9), pages 2182-2192, June.
    7. Osman GULSEVEN & Michael WOHLGENANT, 2017. "What are the factors affecting the consumers' milk choices?," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 63(6), pages 271-282.
    8. Kolodinsky, Jane, 2008. "Affect or information? Labeling policy and consumer valuation of rBST free and organic characteristics of milk," Food Policy, Elsevier, vol. 33(6), pages 616-623, December.

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