|
on Discrete Choice Models |
| By: | Van den Broeck, Goedele; Van Hoyweghen, Kaat; Maertens, Miet |
| Abstract: | The rapid transformation of the agri-food sector in developing countries has created many rural off-farm employment opportunities, especially for women. There is a growing concern about worker welfare and employment conditions in agri-food and export sectors but empirical evidence on this issue is scant. We analyze contractual preferences of female workers in the horticultural export sector in Senegal. We use a discrete choice experiment to assess women’s preferences for a labor contract and employ a latent class model to capture preference heterogeneity. We find that women have a high willingness to accept a labor contract and that differences in preferences for contract attributes can be explained by women’s empowerment status. |
| Keywords: | discrete choice experiment, employment preferences, rural off-farm employment, horticultural exports, Senegal, Agribusiness, Crop Production/Industries, J43, Q12, Q17, |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae15:211925&r=dcm |
| By: | Otieno, David; Ogutu, Sylvester |
| Abstract: | In developing countries, especially in sub-Saharan Africa, policy makers have been reluctant to formulate animal welfare policies. This is despite potential benefits of such policies including increased domestic and global consumers’ demand for products that are compliant with humane treatment of animals. This study employed a choice experiment method to establish consumer willingness to pay (WTP) for animal welfare attributes in chicken. Data were drawn from 200 chicken consumers in Nairobi, Kenya and estimated using a random parameter logit model. The results indicate that consumers were willing to pay a premium for humanely-treated chicken. The consumers had a positive and significant preference for use of certified transportation means, humanely slaughtered chicken and animal welfare labelling. However, the consumers showed a negative preference for use of antibiotics in chicken production. These findings are vital for formulation of product differentiation strategies in the industry as well as food policy. |
| Keywords: | Animal-welfare, Chicken, Choice Experiment, Kenya, Agricultural and Food Policy, Livestock Production/Industries, D18, D63, F18, |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae15:212602&r=dcm |
| By: | Rodriguez, Elsa M.M.; Lupin, Beatriz; Gonzalez, Julia |
| Abstract: | Choice Modelling was applied to assess the importance of attributes and willingness to pay for a fresh potato produced with a low environmental impact production system. Among the stated preference methods, this is the most used to study consumer preferences for attributes of goods with little or no market share. We interviewed 402 individuals, aged 18 and over, in super / hypermarkets and grocery stores. Four different attributes of potato: price, agrochemicals content, cooking quality and treatment were selected according to previous research carried out by the authors. For this purpose, a Conditional Logistic Model (McFadden, 1973) was applied. On average, ceteris paribus, the full sample participants were willing to pay between US$ 0.60 and US$0.49 more per 1kg of potatoes with low agrochemical content. In regards to cooking quality attributes, participants were willing to pay between US$ 0.31 and US$ 0.25 more per kg of high quality potatoes |
| Keywords: | Choice Modelling, willingness to pay, consumers´ preferences, fresh potatoes, Agribusiness, Consumer/Household Economics, Crop Production/Industries, C90, D1, |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae15:212288&r=dcm |
| By: | Zhang, Lisha; Gao, Zhifeng; Vassalos, Michael |
| Abstract: | Consumer preferences for food have drastically changed over the last decades. Other than the nutrient provided by food, they increasingly care about the impact of food production on the environment and society. Consequently, consumers require more information regarding a number of intangible product attributes, such as the amount of fertilizer used, whether the farmer adopted sustainable production practices etc. The objective of this paper is twofold. First, the study seeks to identify sustainable consumer groups by examining their preferences of different tangible and intangible attributes of fresh strawberries. Second, it investigates the effect of consumers’ perceptions for different labels (i.e. organic, local etc.) and their willingness to pay for the examined attributes. This can provide valuable insights to retailers, farmers and policy makers to promote sustainable food production and increase profitability by meeting consumers’ increasing demands for sustainability. The study data set is obtained from a nationwide online survey of U.S consumers. Payment card method combined with ordered probit model is used to estimate consumer WTP. Preliminary results indicate that consumers who frequently purchase groceries in farmers markets or those who subscribe to community support agriculture services are willing to pay more for strawberries labeled intangible attributes. |
| Keywords: | Agribusiness, Marketing, |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea16:230060&r=dcm |
| By: | Lizin, Sebastien; Van Passel, Steven; Schreurs, Eloi |
| Abstract: | This paper reports on the findings from discrete choice experiments designed to estimate farmers’ perceived costs of land use restrictions, i.e. crop restrictions, additional fertilizing restrictions, and usage restrictions, as opposed to having no such restrictions. To this end, hypothetical land purchasing decisions were simulated based on the information about productivity, lot size, distance to other land, driving time to home, land use restrictions, and price. Farmers from the Campine area (Belgium) were invited to participate in the survey as the agricultural land in this region still faces the effects of historical heavy metal contamination resulting in crop restrictions. For identical pieces of land, we estimate the perceived cost, calculated as a change in the consumer surplus due to having a land use restriction, to be about 46,000 €/ha for the crop restriction, 50,000 €/ha for the usage restriction, and 70,000 €/ha for the fertilizing restrictions. |
| Keywords: | Agricultural and Food Policy, Land Economics/Use, |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae15:212054&r=dcm |
| By: | Zaffou, Madiha; Campbell, Benjamin |
| Abstract: | Over the last decade there has been a move by many consumers to purchase locally grown products. Many studies have focused on food with limited studies examining plants. Utilizing a choice experiment in conjunction with latent class modeling with examine the impact of locally labeling and retail outlet on preference and willingness to pay for azaleas. Results indicate that only one of the latent classes, about 43% of the sample, valued locally labeling. Furthermore, the same class that valued local also preferred a nursery/greenhouse outlet over a home improvement center. Recommendations for the different retail outlets are given based on the results. |
| Keywords: | local labeling, retail outlet, plants, green industry, Agribusiness, Marketing, |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea16:230056&r=dcm |
| By: | Bai, Junfei; Liu, Haiyan; Wahl, Thomas; Seale, James L. Jr.; Zhang, Caiping |
| Abstract: | This paper examines the impact of Ontario’s Greenbelt legislation, a land use policy that permanently protects over 1.8 million acres of land from non-agricultural development, on farmers’ exit and investment decisions. A farm-level panel data set for 32,512 farms in Ontario is used to perform two econometric estimations: a correlated random effects Probit model of farm exit and a dynamic unobserved effects Tobit model of farm investment. The Greenbelt policy is found to have influenced both farm exit and farm investment decisions, with the impact varying depending on location within the Greenbelt. In particular, the results indicate evidence of a negative impact on farm investment, which is contrary to one of the objectives of the Greenbelt policy. |
| Keywords: | Household composition, Income, Food-away-from-home, Demographics, Consumer/Household Economics, |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae15:212050&r=dcm |
| By: | Mtimet, Nadhem; Walke, Maria; Baker, Derek; Lindahl, Johanna; Hartmann, Monika; Grace, Delia |
| Abstract: | Aflatoxin is a human health threat in many developing countries. This study examines Kenyan milk consumers’ behaviour toward aflatoxin by way of choice experiments. Further, the willingness to pay for different types of milk and aflatoxin status awareness was assessed. Five attributes were selected to describe milk products: milk processing technique, fat content, packaging, price and aflatoxin-free certification. Results indicate that awareness of aflatoxin is high, and that consumers are willing to pay a significant premium for milk that is certified as aflatoxin-free. Results also show, however, that the substantial majority does not know how to avoid aflatoxin-contaminated milk. The results indicate a great need for further education and awareness-raising programs throughout the Kenyan dairy value chain, and a potential for market-based solutions to aflatoxin control in milk. |
| Keywords: | Consumer/Household Economics, Food Consumption/Nutrition/Food Safety, |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae15:212504&r=dcm |
| By: | Vincenzo Merella (University of Cagliari and BCAM); Daniel Santabárbara (Banco de España) |
| Abstract: | Using average import prices (unit values) as proxies for quality, a large body of the international trade literature finds both theoretical and empirical support for the positive relationship between importer income and quality of imports. Several authors, however, argue that the empirical evidence of the link between income and product quality might be spurious, since import prices could be affected by other factors than product quality. This paper takes into account this issue with a new theoretical and empirical approach. Building on Khandelwal’s (2010) discrete choice model approach, where quality is inferred by quantitative market shares as well as unit values, we develop a model that allows for willingness to pay for quality to vary with income. We empirically validate the theoretical relationship between importer income and product quality by using the Eurostat’s COMEXT database, which collects customs data reported by EU countries at 8-digit disaggregation. Our estimations support the positive link between consumer income and product quality, which is also robust across sectors. |
| Keywords: | quality, consumer income, import shares, unit values, nested logit demand. |
| JEL: | F12 F14 L15 |
| Date: | 2016–04 |
| URL: | http://d.repec.org/n?u=RePEc:bde:wpaper:1607&r=dcm |
| By: | Yan, Zhen; Zhou, Jie-hong |
| Abstract: | An increasing number of recent media reports on pork safety problems at source have attracted great attention and thought to be a growing threat to risk perception amplification on pork safety, even leading to public panic. This paper was among the first to explore the impact of media report about potential benefits and risk of traceability on consumer utility valuation and preference heterogeneities for select pork traits. By capturing key issues from online media reports in last three years both on benefit and risk as information shock showed to interviewees, we investigate willingness to pay from 788 consumers across sixteen traceability pilot cities, China. The findings indicate that consumers value certification more than other pork traits, while only preference on farmerinfo labeling significantly imcreases in negative information group. Highly valued farmerinfo and free range labeling in same class from positive information shock, while consumer preference for free range in one class from negative group. |
| Keywords: | Food Consumption/Nutrition/Food Safety, Livestock Production/Industries, |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae15:212609&r=dcm |
| By: | Yan, Zhen; Zhou, Jie-hong |
| Abstract: | An increasing number of recent media reports on pork safety problems at source have attracted great attention and thought to be a growing threat to risk perception amplification on pork safety, even leading to public panic. This paper was among the first to explore the impact of media report about potential benefits and risk of traceability on consumer utility valuation and preference heterogeneities for select pork traits. By capturing key issues from online media reports in last three years both on benefit and risk as information shock showed to interviewees, we investigate willingness to pay from 788 consumers across sixteen traceability pilot cities, China. The findings indicate that consumers value certification more than other pork traits, while only preference on farmerinfo labeling significantly imcreases in negative information group. Highly valued farmerinfo and free range labeling in same class from positive information shock, while consumer preference for free range in one class from negative group. |
| Keywords: | International Development, Livestock Production/Industries, |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae15:211884&r=dcm |
| By: | Ngoc, Pham Thi; Meuwissen, Miranda; Le, Tru; Bosma, Roel; Verreth, Johan; Lansink, Alfons G.J.M. |
| Abstract: | A growing number of European customers’ demands certified pangasius such as ASC in order to ensure sustainable production. Implementing Recirculating Aquaculture Systems (RAS) contributes to an improved water quality, a key issue in achieving ASC certification. This study uses a choice experiment to measure farmers’ preferences for RAS in pangasius production in Vietnam. The farmers’ choice for RAS is positively affected by enhanced yield levels and achievement of ASC certification with price premium. Also the area of farming is found to be important, i.e. farmers in saltwater intrusion areas are more likely to implement RAS. Main constraints are availability of finance and lack of trust in receiving the ASC price premium. To stimulate the adoption of RAS, policies can provide interest subsidies on loans to finance RAS investment, while retailers could ensure a price premium for ASC certified pangasius. |
| Keywords: | Agricultural and Food Policy, Agricultural Finance, Farm Management, |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae15:212632&r=dcm |
| By: | Kassas, Bachir; Palma, Marco; Zhang, Yvette |
| Abstract: | The longstanding dispute over the accuracy of stated preference methods in eliciting the true valuations of individuals has stimulated interest in analyzing preference inconsistencies between revealed and stated preference mechanisms. This paper uses preference orderings to provide a more robust comparison between revealed and stated preferences and assess the validity of the latter. This is done by comparing an incentive compatible auction experiment (recoded as implied ranks) with a ranking procedure. Partial ranking models are constructed to examine consumer preferences under the two valuation mechanisms for the most preferred and the least preferred alternatives in order to provide a more detailed analysis. The stability and symmetry of parameters was tested and systematic differences between the models were analyzed in order to measure the extent of preference inconsistencies between the auction exercise and ranking procedure. Furthermore, the predictive power of the models was calculated to evaluate the relative reliability of each mechanism. The results provide robust evidence that individuals often employ different behavioral rules under the two elicitation mechanisms, especially when expressing mild feelings about certain alternatives. Compared to the more accurate auctions mechanism, the ranking exercise seems to perform fairly well only when eliciting preferences over the best ranked alternative. |
| Keywords: | auctions, choice-ranking, ordinal data, parameter stability, parameter symmetry, preference inconsistency, revealed preferences, stated preference, Consumer/Household Economics, Institutional and Behavioral Economics, D12, |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea16:229737&r=dcm |
| By: | Haitao Yin (Antai College of Economics and Management, Shanghai Jiao Tong University); Rui Zhao (Shanghai Jiao Tong University) |
| Keywords: | willingness to pay, eco labels |
| Date: | 2016–03 |
| URL: | http://d.repec.org/n?u=RePEc:eep:report:rr20160314&r=dcm |
| By: | Han, Yang; Bi, Xiang |
| Keywords: | Willingness to pay, price premium, seafood, food safety incidents, effect, Agricultural and Food Policy, Food Consumption/Nutrition/Food Safety, |
| Date: | 2016–02–06 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea16:230120&r=dcm |