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Convergent validity of stated preference methods to estimate willingness-to-pay for seafood traceability: The case of Gulf of Mexico oysters

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  • John C. Whitehead
  • O. Ashton Morgan
  • William L. Huth

Abstract

In this study we compare willingness to pay for a seafood traceability system form contingent behavior demand and contingent valuation referendum vote models using data from a survey of Gulf of Mexico oyster consumers following the BP oil spill in 2010. We estimate a fixed effects model of oyster demand using contingent behavior data and find that a traceability program increases demand and consumer surplus. We estimate a referendum model for the seafood traceability program using contingent valuation data. We find that welfare estimates from the contingent behavior and contingent valuation methods are convergent valid under certain conditions. Key Words:

Suggested Citation

  • John C. Whitehead & O. Ashton Morgan & William L. Huth, 2016. "Convergent validity of stated preference methods to estimate willingness-to-pay for seafood traceability: The case of Gulf of Mexico oysters," Working Papers 16-15, Department of Economics, Appalachian State University.
  • Handle: RePEc:apl:wpaper:16-15
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    File URL: http://econ.appstate.edu/RePEc/pdf/wp1615.pdf
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    References listed on IDEAS

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    1. Petrolia, Daniel R. & Walton, William C. & Yehouenou, Lauriane, 2017. "Is There A Market For Branded Gulf Of Mexico Oysters?," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 49(01), pages 45-65, February.
    2. Parsons, George R. & Morgan, Ash & Whitehead, John C. & Haab, Timothy C., 2006. "The Welfare Effects of Pfiesteria-Related Fish Kills: A Contingent Behavior Analysis of Seafood Consumers," Agricultural and Resource Economics Review, Cambridge University Press, vol. 35(02), pages 348-356, October.
    3. Morgan, O. Ashton & Martin, Gregory S. & Huth, William L., 2009. "Oyster Demand Adjustments to Counter-Information and Source Treatments in Response to Vibrio vulnificus," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 41(03), pages 683-696, December.
    4. Haab, Timothy C. & McConnell, Kenneth E., 1997. "Referendum Models and Negative Willingness to Pay: Alternative Solutions," Journal of Environmental Economics and Management, Elsevier, vol. 32(2), pages 251-270, February.
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    6. Johnston, Robert J. & Roheim, Cathy A. & Donath, Holger & Asche, Frank, 2001. "Measuring Consumer Preferences For Ecolabeled Seafood: An International Comparison," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 26(1), pages 1-20, July.
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    9. Johnston, Robert J. & Roheim, Cathy A., 2006. "A Battle of Taste and Environmental Convictions for Ecolabeled Seafood: A Contingent Ranking Experiment," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 31(2), pages 1-18, August.
    10. Nancy E. Bockstael & Ivar E. Strand, Jr., 1987. "The Effect of Common Sources of Regression Error on Benefit Estimates," Land Economics, University of Wisconsin Press, vol. 63(1), pages 11-20.
    11. Beaumais, Olivier & Appéré, Gildas, 2010. "Recreational shellfish harvesting and health risks: A pseudo-panel approach combining revealed and stated preference data with correction for on-site sampling," Ecological Economics, Elsevier, vol. 69(12), pages 2315-2322, October.
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    13. Xiang Bi & Lisa House & Zhifeng Gao, 2016. "Impacts of Nutrition Information on Choices of Fresh Seafood Among Parents," Marine Resource Economics, University of Chicago Press, vol. 31(3), pages 355-372.
    14. Morgan, O. Ashton & Martin, Gregory S. & Huth, William L., 2009. "Oyster Demand Adjustments to Counter-Information and Source Treatments in Response to Vibrio vulnificus," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 41(3), pages 1-14, December.
    15. Krinsky, Itzhak & Robb, A Leslie, 1986. "On Approximating the Statistical Properties of Elasticities," The Review of Economics and Statistics, MIT Press, vol. 68(4), pages 715-719, November.
    16. George Parsons & Kelley Myers, 2017. "Fat tails and truncated bids in contingent valuation: an application to an endangered shorebird species," Chapters,in: Contingent Valuation of Environmental Goods, chapter 2, pages 17-42 Edward Elgar Publishing.
    17. O. Morgan & John Whitehead & William Huth & Greg Martin & Richard Sjolander, 2013. "A Split-Sample Revealed and Stated Preference Demand Model to Examine Homogenous Subgroup Consumer Behavior Responses to Information and Food Safety Technology Treatments," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 54(4), pages 593-611, April.
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    20. O. Ashton Morgan & Gregory S. Martin & William L. Huth, 2009. "Oyster Demand Adjustments to Counter-Information and Source Treatments in Response to Vibrio vulnificus," Working Papers 09-08, Department of Economics, Appalachian State University.
    21. Frédéric Salladarré & Dorothée Brécard & Sterenn Lucas & Pierrick Ollivier, 2016. "Are French consumers ready to pay a premium for eco-labeled seafood products? A contingent valuation estimation with heterogeneous anchoring," Agricultural Economics, International Association of Agricultural Economists, vol. 47(2), pages 247-258, March.
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    23. Huang, Ju-Chin & Haab, Timothy C. & Whitehead, John C., 2004. "Risk Valuation in the Presence of Risky Substitutes: An Application to Demand for Seafood," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 36(01), pages 213-228, April.
    24. O. Ashton Morgan & John C. Whitehead & William L. Huth & Greg S. Martin & Richard Sjolander, 2016. "Measuring the Impact of the BP Deepwater Horizon Oil Spill on Consumer Behavior," Land Economics, University of Wisconsin Press, vol. 92(1), pages 82-95.
    25. John C. Whitehead & O. Ashton Morgan & William L. Huth & Gregory S. Martin & Richard Sjolander, 2012. "Willingness-to-Pay for Oyster Consumption Mortality Risk Reductions," Working Papers 12-07, Department of Economics, Appalachian State University.
    26. Robert Fonner, 2015. "Willingness to Pay for Multiple Seafood Labels in a Niche Market," Marine Resource Economics, University of Chicago Press, vol. 30(1), pages 51-70.
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    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. New working paper on the demand for seafood safety
      by John Whitehead in Environmental Economics on 2016-09-24 13:59:04

    More about this item

    JEL classification:

    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation

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