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Consumer Willingness to Pay for Food Safety in Beijing: A Case Study of Food Additives

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  • Liu, Yuanyuan
  • Zeng, Yinchu
  • Yu, Xiaohua

Abstract

Constructing a theoretical framework and using a survey data of 294 customers from 25 supermarkets in Beijing, this paper studies the willingness to pay (WTP) for additive-free Mooncakes in Beijing and finds that age and income are important for WTP for “food safety” in China. Income is positively correlated with the WTP and there is an inverted-U-shaped relationship between age and WTP. This study indicates that consumers in Beijing are willing to pay 5.80 Yuan more for an additive-free Mooncake, which provides a good policy benchmark for the government regulation on food additives. Furthermore, the theoretical framework also provides a good benchmark for understanding WTP in the future study of food safety.

Suggested Citation

  • Liu, Yuanyuan & Zeng, Yinchu & Yu, Xiaohua, 2009. "Consumer Willingness to Pay for Food Safety in Beijing: A Case Study of Food Additives," 2009 Conference, August 16-22, 2009, Beijing, China 51234, International Association of Agricultural Economists.
  • Handle: RePEc:ags:iaae09:51234
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    File URL: http://ageconsearch.umn.edu/record/51234/files/556-Consumer%20Willingness%20to%20Pay%20for%20Food%20Safety%20in%20Beijing-A%20Case%20Study%20of%20Food%20Additives.pdf
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    References listed on IDEAS

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    2. 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.
    3. Cooper Joseph C., 1993. "Optimal Bid Selection for Dichotomous Choice Contingent Valuation Surveys," Journal of Environmental Economics and Management, Elsevier, vol. 24(1), pages 25-40, January.
    4. Richard T. Carson, 2011. "Contingent Valuation," Books, Edward Elgar Publishing, number 2489.
    5. W. Michael Hanemann, 1984. "Welfare Evaluations in Contingent Valuation Experiments with Discrete Responses," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 66(3), pages 332-341.
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    7. Richard C. Ready & Jean C. Buzby & Dayuan Hu, 1996. "Differences between Continuous and Discrete Contingent Value Estimates," Land Economics, University of Wisconsin Press, vol. 72(3), pages 397-411.
    8. Xiaohua Yu & David Abler, 2009. "The Demand for Food Quality in Rural China," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 91(1), pages 57-69.
    9. Cameron Trudy Ann & Quiggin John, 1994. "Estimation Using Contingent Valuation Data from a Dichotomous Choice with Follow-Up Questionnaire," Journal of Environmental Economics and Management, Elsevier, vol. 27(3), pages 218-234, November.
    10. P. Wilner Jeanty, 2007. "Constructing Krinsky and Robb Confidence Interval for Mean and Median WTP Using Stata," North American Stata Users' Group Meetings 2007 8, Stata Users Group, revised 30 Aug 2007.
    11. Bockstael, Nancy E. & Freeman III, A. Myrick, 2006. "Welfare Theory and Valuation," Handbook of Environmental Economics,in: K. G. Mäler & J. R. Vincent (ed.), Handbook of Environmental Economics, edition 1, volume 2, chapter 12, pages 517-570 Elsevier.
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    Cited by:

    1. Ngigi, Marther W. & Okello, Julius Juma & Lagerkvist, Carl Johan & Karanja, Nancy & Mburu, John G., 2010. "Assessment of developing-country urban consumers’ willingness to pay for quality of leafy vegetables: The case of middle and high income consumers in Nairobi, Kenya," 2010 AAAE Third Conference/AEASA 48th Conference, September 19-23, 2010, Cape Town, South Africa 96191, African Association of Agricultural Economists (AAAE).

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