IDEAS home Printed from https://ideas.repec.org/p/ags/eaae05/24504.html
   My bibliography  Save this paper

Consumers' Willingness to Pay for Genetically Modified Foods in Kenya

Author

Listed:
  • Kimenju, Simon Chege
  • De Groote, Hugo

Abstract

A survey of 600 consumers was conducted in Nairobi to determine attitudes and willingness to pay (WTP) for GM maize meal. WTP was estimated using the double-bounded logit model. Overall, 38% are aware of GM crops. Most consumers believe in the technology's positive impacts, but are concerned about environmental and health risks. Majority (68%) would buy GM maize meal at the price of their favourite maize meal brand. The mean WTP for GM maize meal is KShs 58 for a 2kg packet, a premium of 13.7 % over mean average price of favourite brands. WTP is influenced more by subjective than socioeconomic characteristics.

Suggested Citation

  • Kimenju, Simon Chege & De Groote, Hugo, 2005. "Consumers' Willingness to Pay for Genetically Modified Foods in Kenya," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24504, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaae05:24504
    DOI: 10.22004/ag.econ.24504
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/24504/files/pp05ki01.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.24504?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Onyango, Benjamin & Nayga, Rodolfo M. & Govindasamy, Ramu, 2006. "U.S. Consumers' Willingness to Pay for Food Labeled ‘Genetically Modified’," Agricultural and Resource Economics Review, Cambridge University Press, vol. 35(2), pages 299-310, October.
    2. Kaneko, Naoya & Chern, Wen S., 2003. "Consumer Acceptance Of Genetically Modified Foods: A Telephone Survey," 2003 Annual meeting, July 27-30, Montreal, Canada 21999, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    3. Carlsson, Fredrik & Frykblom, Peter & Lagerkvist, Carl Johan, 2004. "Consumer benefits of labels and bans on genetically modified food - An empirical analysis using Choice Experiments," 2004 Annual meeting, August 1-4, Denver, CO 20370, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    4. Kynda R. Curtis & Klaus Moeltner, 2006. "Genetically Modified Food Market Participation and Consumer Risk Perceptions: A Cross‐Country Comparison," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 54(2), pages 289-310, June.
    5. Christian Vossler & Gregory Poe & P. Welsh & Robert Ethier, 2004. "Bid Design Effects in Multiple Bounded Discrete Choice Contingent Valuation," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 29(4), pages 401-418, December.
    6. Springer, A. & Mattas, Konstadinos & Papastefanou, G. & Tsioumanis, Asterios, 2002. "Comparing Consumer Attitudes towards Genetically Modified Food in Europe," 2002 International Congress, August 28-31, 2002, Zaragoza, Spain 24858, European Association of Agricultural Economists.
    7. McCluskey, Jill J. & Grimsrud, Kristine M. & Ouchi, Hiromi & Wahl, Thomas I., 2003. "Consumer Response to Genetically Modified Food Products in Japan," Agricultural and Resource Economics Review, Cambridge University Press, vol. 32(2), pages 222-231, October.
    8. Chen, Hsin-Yi & Chern, Wen S., 2002. "Consumer Acceptance Of Genetically Modified Foods," 2002 Annual meeting, July 28-31, Long Beach, CA 19758, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    9. Annelies Verdurme & Jacques Viaene, 2003. "Consumer beliefs and attitude towards genetically modified food: Basis for segmentation and implications for communication," Agribusiness, John Wiley & Sons, Ltd., vol. 19(1), pages 91-113.
    10. Wanki Moon & Siva K. Balasubramanian, 2004. "Public Attitudes toward Agrobiotechnology: The Mediating Role of Risk Perceptions on the Impact of Trust, Awareness, and Outrage," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 26(2), pages 186-208.
    11. Odhiambo, Benjamin & Bergvinson, David & Mugo, Stephen & De Groote, Hugo, 2004. "Debunking The Myths Of Gm Crops For Africa: The Case Of Bt Maize In Kenya," 2004 Annual meeting, August 1-4, Denver, CO 19918, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    12. Timothy C. Haab & Kenneth E. McConnell, 2002. "Valuing Environmental and Natural Resources," Books, Edward Elgar Publishing, number 2427, December.
    13. Bai, Junfei & Zhang, Caiping & Huang, Jikun & Hallman, William K. & Pray, Carl E. & Aquino, Helen L., 2004. "Consumer Acceptance Of Genetically Modificed Foods: A Comparison Between The Us And China," 2004 Annual meeting, August 1-4, Denver, CO 20026, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    14. Wanki Moon & Siva K. Balasubramanian, 2004. "Public Attitudes toward Agrobiotechnology: The Mediating Role of Risk Perceptions on the Impact of Trust, Awareness, and Outrage," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 26(2), pages 186-208.
    15. Alberini, Anna & Boyle, Kevin & Welsh, Michael, 2003. "Analysis of contingent valuation data with multiple bids and response options allowing respondents to express uncertainty," Journal of Environmental Economics and Management, Elsevier, vol. 45(1), pages 40-62, January.
    16. Senauer, Benjamin, 2001. "The Food Consumer In The 21st Century: New Research Perspectives," Working Papers 14346, University of Minnesota, The Food Industry Center.
    17. Hugo De Groote & George Owuor & Cheryl Doss & James Ouma & Lutta Muhammad & K. Danda, 2005. "The Maize Green Revolution in Kenya Revisited," The Electronic Journal of Agricultural and Development Economics, Food and Agriculture Organization of the United Nations, vol. 2(1), pages 32-49.
    18. Hossain, Ferdaus & Onyango, Benjamin M. & Adelaja, Adesoji O. & Schilling, Brian J. & Hallman, William K., 2003. "Nutritional Benefits And Consumer Willingness To Buy Genetically Modified Foods," Journal of Food Distribution Research, Food Distribution Research Society, vol. 34(01), pages 1-6, March.
    19. Vossler, Christian A. & Poe, Gregory L., 2005. "Analysis of contingent valuation data with multiple bids and response options allowing respondents to express uncertainty: a comment," Journal of Environmental Economics and Management, Elsevier, vol. 49(1), pages 197-200, January.
    20. Ganiere, Pierre & Chern, Wen S., 2004. "Consumer Acceptance Of Genetically Modified Foods: A Profile Of American Consumers," 2004 Annual meeting, August 1-4, Denver, CO 19972, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    21. Kim, Hyun Seok & Kim, Kwansoo, 2004. "A Multi-Country Assessment Of Consumer Attitudes Of Genetically Modified Foods And The Implications For New Labeling System," 2004 Annual meeting, August 1-4, Denver, CO 19989, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    22. Qaim, Matin, 2003. "Bt Cotton in India: Field Trial Results and Economic Projections," World Development, Elsevier, vol. 31(12), pages 2115-2127, December.
    23. Thirtle, Colin & Beyers, Lindie & Ismael, Yousouf & Piesse, Jenifer, 2003. "Can GM-Technologies Help the Poor? The Impact of Bt Cotton in Makhathini Flats, KwaZulu-Natal," World Development, Elsevier, vol. 31(4), pages 717-732, April.
    24. Michael Hanemann & John Loomis & Barbara Kanninen, 1991. "Statistical Efficiency of Double-Bounded Dichotomous Choice Contingent Valuation," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 73(4), pages 1255-1263.
    25. Jayson L. Lusk & Darren Hudson, 2004. "Willingness-to-Pay Estimates and Their Relevance to Agribusiness Decision Making," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 26(2), pages 152-169.
    26. Moon, Wanki & Rimal, Arbindra & Balasubramanian, Siva K., 2004. "Willingness-to-Accept and Willingness-to-Pay for GM and Non-GM Food: UK Consumers," 2004 Annual meeting, August 1-4, Denver, CO 20138, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    27. Eicher, Carl K. & Maredia, Karim & Sithole-Niang, Idah, 2006. "Crop biotechnology and the African farmer," Food Policy, Elsevier, vol. 31(6), pages 504-527, December.
    28. Brian Roach & Kevin J. Boyle & Michael Welsh, 2002. "Testing Bid Design Effects in Multiple-Bounded, Contingent-Valuation Questions," Land Economics, University of Wisconsin Press, vol. 78(1), pages 121-131.
    29. Curtis, Kynda R. & Wahl, Thomas I. & McCluskey, Jill J., 2003. "Consumer Acceptance of Genetically Modified Food Products in the Developing World," 2003 Conference (47th), February 12-14, 2003, Fremantle, Australia 57858, Australian Agricultural and Resource Economics Society.
    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. Caswell, Julie A. & Joseph, Siny, 2007. "Consumer Demand for Quality: Major Determinant for Agricultural and Food Trade in the Future?," Working Paper Series 7390, University of Massachusetts, Amherst, Department of Resource Economics.
    2. Broberg, Thomas & Brännlund, Runar, 2008. "An alternative interpretation of multiple bounded WTP data--Certainty dependent payment card intervals," Resource and Energy Economics, Elsevier, vol. 30(4), pages 555-567, December.
    3. Owusu, Rebecca & Dadzie, Samuel Kwesi Ndzebah, 2021. "Heterogeneity in consumer preferences for organic and genetically modified food products in Ghana," African Journal of Agricultural and Resource Economics, African Association of Agricultural Economists, vol. 16(2), June.
    4. Kaneko, Naoya & Chern, Wen S., 2005. "Willingness to Pay for Genetically Modified Oil, Cornflakes, and Salmon: Evidence from a U.S. Telephone Survey," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 37(3), pages 1-19, December.
    5. Waranan Tantiwat & Christopher Gan & Wei Yang, 2021. "The Estimation of the Willingness to Pay for Air-Quality Improvement in Thailand," Sustainability, MDPI, vol. 13(21), pages 1-23, November.
    6. Moon, Wanki & Balasubramanian, Siva K. & Rimal, Arbindra, 2006. "WTP and WTA for Non-GM and GM Food: UK Consumers," 2006 Annual meeting, July 23-26, Long Beach, CA 21057, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    7. Lin, William W. & Somwaru, Agapi & Tuan, Francis C. & Huang, Jikun & Bai, Junfei, 2005. "Consumers' Willingness to Pay for Biotech Foods in China," 2005 Annual meeting, July 24-27, Providence, RI 19569, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    8. Delmond, Anthony R. & McCluskey, Jill J. & Yormirzoev, Mirzobobo & Rogova, Maria A., 2018. "Russian consumer willingness to pay for genetically modified food," Food Policy, Elsevier, vol. 78(C), pages 91-100.
    9. Harrison, R. Wes & Han, Jae-Hwan, 2005. "The Effects of Urban Consumer Perceptions on Attitudes for Labeling of Genetically Modified Foods," Journal of Food Distribution Research, Food Distribution Research Society, vol. 36(2), pages 1-10, July.
    10. Krishna, Vijesh V. & Qaim, Matin, 2007. "Estimating the adoption of Bt eggplant in India: Who Benefits from public-private partnership?," Food Policy, Elsevier, vol. 32(5-6), pages 523-543.
    11. Hermann Donfouet & P. Jeanty & P.-A. Mahieu, 2014. "Dealing with internal inconsistency in double-bounded dichotomous choice: an application to community-based health insurance," Empirical Economics, Springer, vol. 46(1), pages 317-328, February.
    12. Kelvin Balcombe & Aurelia Samuel & Iain Fraser, 2009. "Estimating WTP With Uncertainty Choice Contingent Valuation," Studies in Economics 0921, School of Economics, University of Kent.
    13. Farida, Badu-Gyan & Victor, Owusu, 2017. "Consumer Willingness To Pay A Premium For A Functional Food In Ghana," APSTRACT: Applied Studies in Agribusiness and Commerce, AGRIMBA, vol. 11(01-2), September.
    14. Devkota, Nirmala & Paudel, Krishna P. & Parajuli, Shanta, 2009. "Broiler Producers’ Willingness To Pay To Manage Nutrient Pollution," 2009 Annual Meeting, January 31-February 3, 2009, Atlanta, Georgia 46825, Southern Agricultural Economics Association.
    15. Martinez-Poveda, Africa & Molla-Bauza, Margarita Brugarolas & del Campo Gomis, Francisco Jose & Martinez, Laura Martinez-Carrasco, 2009. "Consumer-perceived risk model for the introduction of genetically modified food in Spain," Food Policy, Elsevier, vol. 34(6), pages 519-528, December.
    16. Cooper, Bethany & Crase, Lin & Burton, Michael P., 2010. "Urban Water Restrictions: Attitudes and Avoidance," 2010 Conference (54th), February 10-12, 2010, Adelaide, Australia 58892, Australian Agricultural and Resource Economics Society.
    17. Eli P. Fenichel & Frank Lupi & John P. Hoehn & Michael D. Kaplowitz, 2009. "Split-Sample Tests of "No Opinion" Responses in an Attribute-Based Choice Model," Land Economics, University of Wisconsin Press, vol. 85(2), pages 348-362.
    18. Kimenju, Simon Chege & De Groote, Hugo & Morawetz, Ulrich B., 2006. "Comparing Accuracy and Costs of Revealed and Stated Preferences: The Case of Consumer Acceptance of Yellow Maize in East Africa," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25642, International Association of Agricultural Economists.
    19. Ousmane Z. Traoré & Lota D. Tamini & Bernard Korai, 2023. "Willingness to pay for credence attributes associated with agri‐food products—Evidence from Canada," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 71(3-4), pages 303-327, September.
    20. Aruga, Kentaka, 2015. "Consumer responses to food products produced near the Fukushima nuclear plant," MPRA Paper 66153, University Library of Munich, Germany.

    More about this item

    Keywords

    Consumer/Household Economics;

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
    • Q16 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - R&D; Agricultural Technology; Biofuels; Agricultural Extension Services

    Statistics

    Access and download statistics

    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:ags:eaae05:24504. 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: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/eaaeeea.html .

    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.