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Measuring heterogeneity, survey engagement and response quality in preferences for organic products in Nigeria

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  • Muhammad Bello
  • Awudu Abdulai

Abstract

The identification of the market potentials of organic products is important in the drive towards a sustainable agricultural development in sub-Saharan Africa (SSA). However, available evidence shows that valuing attributes of credence goods (such as organic products) while using stated preference methods faces additional obstacles compared to other normal goods. In this study, we examine consumers’ preferences and willingness-to-pay (WTP) for health and environmental attributes of organic products in Nigeria. We employ an approach that allows us to adequately capture the value of organic products by linking part of the heterogeneity across respondents to differences in scale, while making use of indicators of survey engagement, without risks of endogeneity bias and measurement error that arise from the deterministic methods. The empirical results show that market for organic products exists in Nigeria, with reduction in pesticide residues attribute attracting the highest value, followed by the certification programme. Furthermore, we observe that increases in the latent engagement variable lead to a greater probability of agreement with statements relating to survey understanding and realism, and hence more substantive output.

Suggested Citation

  • Muhammad Bello & Awudu Abdulai, 2016. "Measuring heterogeneity, survey engagement and response quality in preferences for organic products in Nigeria," Applied Economics, Taylor & Francis Journals, vol. 48(13), pages 1159-1171, March.
  • Handle: RePEc:taf:applec:v:48:y:2016:i:13:p:1159-1171
    DOI: 10.1080/00036846.2015.1093089
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    Cited by:

    1. Wiktor Budziński & Mikołaj Czajkowski, 2018. "Hybrid choice models vs. endogeneity of indicator variables: a Monte Carlo investigation," Working Papers 2018-21, Faculty of Economic Sciences, University of Warsaw.
    2. Joanna Mazur & Katarzyna Śledziewska & Damian Zieba, 2018. "Regulation of Geo-blocking: does it address the problem of low intraEU iTrade?," Working Papers 2018-20, Faculty of Economic Sciences, University of Warsaw.
    3. Bello, Muhammad & Abdulai, Awudu, 2016. "Identification of consumer segments and market potentials for organic products in Nigeria: A Hybrid Latent Class approach," 2016 Fifth International Conference, September 23-26, 2016, Addis Ababa, Ethiopia 246965, African Association of Agricultural Economists (AAAE).

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