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
    as

    Download full text from publisher

    File URL: http://purl.umn.edu/24504
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    as
    1. 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).
    2. 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(02), pages 299-310, October.
    3. Qaim, Matin, 2003. "Bt Cotton in India: Field Trial Results and Economic Projections," World Development, Elsevier, vol. 31(12), pages 2115-2127, December.
    4. 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.
    5. 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.
    6. 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.
    7. 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.
    8. 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.
    9. 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(02), pages 222-231, October.
    10. 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.
    11. 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.
    12. 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.
    13. 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.
    14. 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).
    15. Timothy C. Haab & Kenneth E. McConnell, 2002. "Valuing Environmental and Natural Resources," Books, Edward Elgar Publishing, number 2427.
    16. repec:oup:revage:v:26:y:2004:i:2:p:186-208. is not listed on IDEAS
    17. 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.
    18. Senauer, Benjamin, 2001. "The Food Consumer In The 21st Century: New Research Perspectives," Working Papers 14346, University of Minnesota, The Food Industry Center.
    19. 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.
    20. 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), March.
    21. 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.
    22. 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)

    More about this item

    Keywords

    GMO; biotechnology; consumer; Africa; maize; Consumer/Household Economics; D12; C25; Q16;

    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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search). General contact details of provider: http://edirc.repec.org/data/eaaeeea.html .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.