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Swedish Consumers' Willingness to Pay for Food Safety - a Contingent Valuation Study on Salmonella Risk

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Abstract

This paper examines the value to Swedish citizens of reducing the risk for salmonella bacteria in chicken filet. The contingent valuation (CV) study is based on the results of a postal questionnaire that was distributed to 2 000 randomly selected Swedish citizens aged 18-74. The valuation format used is a stated preference double bounded dichotomous choice. We employ the non-parametric Turnbull Lower Bound method in combination with Monte Carlo simulations to obtain lower bound estimates of the mean and median values of expected willingness-to-pay (WTP) for reducing the risk for salmonellosis, as well as values of a statistical case (VSC) and a statistical life (VSL). We find a VSC of between SEK 121 045 (110 297–131 814) and SEK 182 966 (167 915–197 896) depending on the format used (values in parentheses constitute a 90 percent confidence interval). VSL values of SEK 13.3 million and 48.3 million are estimated using different formats, but neither estimation is statistically significant. Since this is the first Swedish study on WTP for food safety, mean and median values of VSL and VSC cannot be directly compared with previous results, but the values obtained are in line with comparable Swedish studies on WTP for traffic safety as well as with international studies related to food safety. We do not find any strong linkage between WTP and income, age or gender. Scale sensitivity seems to depend on which model is chosen, while household size, risk perception ability and perceived Quality Adjusted Life Years (QALY:s) lost seem to be strong predictors of WTP.

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  • Sundström, Kristian & Andersson, Henrik, 2009. "Swedish Consumers' Willingness to Pay for Food Safety - a Contingent Valuation Study on Salmonella Risk," Working Papers 2009:2, Swedish National Road & Transport Research Institute (VTI).
    • Handle: RePEc:hhs:vtiwps:2009_002
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    1. Henrik Andersson & Nicolas Treich, 2011. "The Value of a Statistical Life," Chapters, in: André de Palma & Robin Lindsey & Emile Quinet & Roger Vickerman (ed.), A Handbook of Transport Economics, chapter 17, Edward Elgar Publishing.
    2. Alberini, Anna & Cropper, Maureen & Krupnick, Alan & Simon, N.B.Nathalie B., 2004. "Does the value of a statistical life vary with age and health status? Evidence from the US and Canada," Journal of Environmental Economics and Management, Elsevier, vol. 48(1), pages 769-792, July.
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    7. Isabell Goldberg & Jutta Roosen, 2007. "Scope insensitivity in health risk reduction studies: A comparison of choice experiments and the contingent valuation method for valuing safer food," Journal of Risk and Uncertainty, Springer, vol. 34(2), pages 123-144, April.
    8. 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.
    9. Hanemann, W., 1994. "Contingent Valuation and Economics," CUDARE Working Papers 198636, University of California, Berkeley, Department of Agricultural and Resource Economics.
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    1. Henrik Andersson & James Hammitt & Gunnar Lindberg & Kristian Sundström, 2013. "Willingness to Pay and Sensitivity to Time Framing: A Theoretical Analysis and an Application on Car Safety," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 56(3), pages 437-456, November.
    2. Rachel Baker & Anna Bartczak & Susan Chilton & Hugh Metcalf, 2012. "Did people "buy" what was "sold"? A qualitative evaluation a Contingent Valuation survey information set for gains in life expectancy," Working Papers 2012-16, Faculty of Economic Sciences, University of Warsaw.

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    More about this item

    Keywords

    Contingent valuation; Food safety; Health risk; Salmonellosis;
    All these keywords.

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy

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