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Floriculture value exceeds $5.8 billion in the United States. Environmental challenges, market trends, and diseases complicate breeding priorities. To inform breeders’ and geneticists’ research efforts, we set out to gather consumers’ preferences in the form of willingness to pay (WTP) for different rose attributes in a discrete choice experiment. The responses are modeled in WTP space, using polynomials to account for heterogeneity. Consumer preferences indicate that heat and disease tolerance were the most important aspects for subjects in the sample, followed by drought resistance. To the best of our knowledge, this is the first study to identify breeding priorities in rosaceous plants from a consumer perspective.
With the seafood food market endowed with various attributes, consumers may prefer certain certifications over others. By surveying a diverse sample of respondents, this study examines consumer preference for farm-raised shrimp in Kentucky and South Carolina. Respondents’ assessment of certain seafood labels is evaluated using a stated preference survey. Willingness-to-pay (WTP) estimates and various product profiles are generated. Consistent with previous studies, a strong preference for fresh and “local” was found. Furthermore, Homegrown by Heroes was highly valued among participants, as well as Best Aquaculture Practices. Based on WTP estimates for these attributes, marketing and policy recommendations are discussed.
In benefit-cost analysis, fatality risk reductions are usually valued based on estimates of adults’ willingness to pay for changes in their own risks, regardless of whether the risk reduction accrues to adults or children. This approach reflects the relatively large number of valuation studies that address adults; however, the literature on children is growing. We review these studies, focusing on those that estimate values for both adults and children using a consistent approach to limit the effects of between-study variability. We rely on explicit selection criteria to identify studies that measure reasonably comparable outcomes and are candidates for application to analyses of U.S. policies. The ratio of values for children to values for adults ranges from 0.6 to 2.9; however, most estimates are greater than 1.5. Although some studies suggest that the divergence between child and adult values decreases as the child ages, this finding is not universal. We conclude that analysts should test the sensitivity of their results to the use of higher values for children than adults. Additional empirical research is needed to support more precise estimates of the variation in values by age that can be featured in the primary analysis.
A choice experiment was conducted concurrently with eye-tracking technology to examine consumer preferences for local and organic produce, notably effects of logo- versus text-labeling formats. We find consumers prefer local to nonlocal, but some consumers will pay a higher premium for logo-labeled produce compared with text-labeled produce. Additionally, we find evidence that a local logo tends to attract attention quicker and hold attention longer compared with a text label. The organic text label was preferred by some consumers compared with the USDA certified organic logo, even with though consumers looked at the logo longer and more often.
This article investigates whether residents of Mexico City value air quality. Our results suggest that air quality improvement in PM10 is equivalent to a marginal willingness to pay (MWTP) of US$440.31 per property for the period 2006–2013. The corresponding MWTP for PM2.5 is US$880.63, for O3 is US$623.78, and for SO2 is as much as US$2091.50. These estimates are considerably larger in magnitude compared to the few other studies in similar settings. As a percentage of annual household income, these represent 2.44 per cent for PM10, 4.88 per cent for PM2.5, 3.46 per cent for O3 and 11.59 per cent for SO2. Our estimates of land value–pollution elasticities for PM10 (−0.26 and − 0.58) are within range of hedonic estimates for total suspended particulate matter in US cities around the 1970s. The corresponding elasticities range from − 0.55 to − 0.84 for PM2.5, from − 0.06 to − 0.49 for O3 and from − 0.11 to − 0.34 for SO2.
The estimates used to value mortality risk reductions are a major determinant of the benefits of many public health and environmental policies. These estimates (typically expressed as the value per statistical life, VSL) describe the willingness of those affected by a policy to exchange their own income for the risk reductions they experience. While these values are relatively well studied in high-income countries, less is known about the values held by lower-income populations. We identify 26 studies conducted in the 172 countries considered low- or middle-income in any of the past 20 years; several have significant limitations. Thus there are few or no direct estimates of VSL for most such countries. Instead, analysts typically extrapolate values from wealthier countries, adjusting only for income differences. This extrapolation requires selecting a base value and an income elasticity that summarizes the rate at which VSL changes with income. Because any such approach depends on assumptions of uncertain validity, we recommend that analysts conduct a standardized sensitivity analysis to assess the extent to which their conclusions change depending on these estimates. In the longer term, more research on the value of mortality risk reductions in low- and middle-income countries is essential.
The study uses interval regression to investigate factors affecting farmers’ willingness to pay for soil testing services in Northern Haiti. The model reveals that factors such as the type of crops grown, group membership, farmers’ educational level, access to credit, gender, contact with extension services or any institution, type of soils, income level, participation in soil testing program and farm size affect the amount to be paid for soil testing services. These results imply that the training module on soil testing and financial support in form of subsidies or access to credit should be provided to farmers.
Recent research examining voting behavior in contingent valuation referenda informs on how consequential survey respondents behave and its impact on willingness-to-pay (WTP) values. This research attempts to examine whether this behavior holds across population subgroups. We consider resident and nonresident users of artificial reefs and find improved construct validity for our resident models over nonresident models. Specifically, resident behavior is in line with a priori expectations with consequential residents more likely to vote in favor of a policy for additional reef funding – a result that is consistent with the “protest no” literature. Consequently, consequential resident voters exhibit a greater WTP than inconsequential voters. Nonresident behavior differs, however. For this subgroup, consequentiality does not influence voting behavior and WTP values do not differ by consequentiality. Overall, more work is required to appropriately identify WTP values for nonresident populations, particularly from a benefit-cost perspective, where appropriately identifying subgroup WTP values are a critical component of measuring the net present value of a given policy.
Recreational saltwater anglers from the mid-Atlantic through the Gulf of Mexico commonly target red drum. Due to concerns about overharvesting within South Carolina coupled with regional management actions, South Carolina explored the technical feasibility of stocking hatchery-produced juvenile red drum as a technique to augment the abundance of South Carolina stock. In order to assess a continued program, in 2005 a mail survey was used to collect data for estimating the economic benefits with the contingent valuation method. The theoretical validity of willingness to pay was assessed by comparison to the value of a change in red drum fishing trips that would result from the program. Benefits were compared to estimated, explicit stocking costs. We illustrate how a certainty recode approach can be used in sensitivity analysis. The net present values (NPVs) for the stocking program are positive suggesting that the program would have been economically efficient relative to no program.
The market structure and recipes for beer has been rapidly changing with craft beers attracting more consumers. Perceived hops quality (hoppiness) is one of the main attributes that microbrewers alter to differentiate their products to satisfy consumers’ changing tastes and preferences. We hypothesize that, in addition to manipulating beer-processing conditions, the conditions under which the hops are grown may also influence the final sensory properties of the beer. Using hops from a field experiment coupled with sensory attributes and sociodemographic characteristics from a contingent valuation survey, we analyzed the impact of under-fertilized hop treatments during the growing season on consumers’ willingness to pay for beer. The results indicate that uninformed consumers in a blind tasting could identify the differences in beer made from hops across the fertilization treatments and, thus, implying that all else equal sufficient fertilizer is required to achieve satisfactory hoppiness for which consumers are willing to pay. (JEL Classifications: C91, D12, L66, Q11)
Community-supported agriculture (CSA) operators are becoming more innovative in their efforts to attract consumers to become CSA shareholders. Therefore, CSA operators must understand which attributes consumers value. Using an online survey of Connecticut consumers in conjunction with a choice experiment, we evaluate consumer preference and willingness to pay for various attributes, including risk mitigation. We find younger consumers are more likely to prefer CSAs with organic products, while a greater diversity of products in the CSA share will increase preference for a CSA for some consumers. Further, we find that consumers with and without CSA experience value the risk-mitigation attribute.
This study examines southeastern consumers’ willingness to pay for marginal changes in production practices that lessen the impact on the environment but that fall short of a complete conversion to organic production. We find that consumers are willing to pay more for tomatoes grown using less water, that contain less pesticide residue, that are not grown with petroleum-based fertilizers, and that travel shorter distances to the final point of sale. These estimates provide a starting point for producers who cannot convert to organic production but for whom it might be profitable to make (more feasible) marginal production changes.
Christmas tree sales are considerable throughout the United States. Understanding the drivers of purchase for Christmas trees is critical for producers and stakeholders within states with tree production. Using data from a choice experiment in combination with latent class modeling, we find that tree height is important, but tree species is less important. Further, we show that local labeling does not influence all consumers. With respect to retail location, we show that nursery/greenhouse and choose-and-cut retail outlets are preferred by a majority of consumers but not by all consumers. Recommendations for the varying retail outlets are provided.
This study uses field experiments to investigate consumer preferences for oysters. In total, 486 adult participants completed a series of revealed-preference dichotomous-choice tasks and a demographic survey. Using a random effects logit model, we investigate factors that influence participants’ decisions to purchase oysters. As expected, price had a significant negative effect, while income had a positive effect. Older individuals and those who were relatively selective regarding shell color or smell are less likely to buy oysters, but consumers who valued size, oyster species, and harvest location were willing to pay more.
Using nationwide survey data, we investigate U.S. meat goat producer preferences and willingness to pay for meat goat breeding stock attributes. Discrete choice experiments were employed, and mixed logit and latent class models were used for analysis. Results showed that producers preferred animals that were highly masculine/feminine, had good structure and soundness, and were of the Boer breed, whereas they preferred fewer animals that were older, of Kiko and Spanish breeds, and priced higher. Significant preference heterogeneity was found among the respondents. Larger-scale producers had greater preference for high masculinity/femininity, good structure and soundness, and Boer bucks.
We estimated visitors’ willingness to pay (WTP) for a variety of environmental attributes in a protected area of the Atacama Desert, a biodiversity hotspot in northern Chile. By using a choice experiment, WTP was estimated for the protection of the following attributes: animals (mammals, amphibians, reptiles and birds), pollinating insects, plants (cacti and woody shrubs), soil quality and pristine landscapes. Visitors placed economic value on all of the attributes. The marginal mean WTP/visitor for the single levels of variation in the attributes ranged from US$4 (for supporting research on foxes) to US$26 (for maintaining soil quality) per visitor per month. These results can contribute to deciding which attributes are likely to be successful at raising funds for conservation. Our approach may be relevant to protected areas of the world with high conservation values, little funding and a lack of large, charismatic species.
As growers adopt and diffuse improved food crop cultivars, their investment decisions for producing new cultivars control product accessibility and directly affect the entire supply chain. In this study, we estimated growers’ willingness to invest (willingness to pay (WTP)) in cultivars with improved quality traits for five rosaceous fruit crops: apple, peach, strawberry, sweet cherry, and tart cherry. WTP values differed by crop, but fruit flavor was consistently rated one of the most important traits, with higher WTP. This information will help breeding programs focus resources to develop superior cultivars for long-term economic sustainability of the rosaceous fruit industry.
While much is known about dyslexia in school-age children and adolescents, less is known about its effects on quality of life in adults. Using data from the Connecticut Longitudinal Study, we provide the first estimates of the monetary value of improving reading, speaking, and cognitive skills to dyslexic and nondyslexic adults. Using a stated-preference survey, we find that dyslexic and nondyslexic individuals value improvements in their skills in reading speed, reading aloud, pronunciation, memory, and information retrieval at about the same rate. Because dyslexics have lower self-reported levels on these skills, their total willingness to pay to achieve a high level of skill is substantially greater than for nondyslexics. However, dyslexic individuals’ willingness to pay (averaging $3000 for an improvement in all skills simultaneously) is small compared with the difference in earnings between dyslexic and nondyslexic adults. We estimate that dyslexic individuals earn 15% less per year (about $8000) than nondyslexic individuals. Although improvements in reading, speaking, and cognitive skills in adulthood are unlikely to eliminate the earnings difference that reflects differences in educational attainment and other factors, stated-preference estimates of the value of cognitive skills may substantially underestimate the value derived from effects on lifetime earnings and health.
We evaluate the claim that bottle size formats signal quality changes by performing a controlled laboratory experiment in which we simultaneously auction two different sweet wines: a pomegranate wine and a grape wine. We vary the size of the bottle from 500 mL to 750 mL between participants, but we keep the amount of wine constant across the bottle sizes. We also explore the effect of expectations for the wines, blind tasting, and information about wine attributes on people's willingness to pay (WTP). For both wines, we find evidence consistent with diminishing marginal utility; for the pomegranate wine, we find a premium for the smaller bottle size, which is consistent with changes in the wine's perceived quality. We also find that information is adequate in offsetting the negative effect of the tasting treatment. (JEL Classifications: C23, C24, C91, D12, M31)
Consumers implicitly incorporate their perceptions of products into their decision processes, yet little research has explicitly focused on how those perceptions influence demand for meat. This study incorporates taste, health, and safety perceptions into a discrete choice experiment for meat products at a grocery store. Our results indicate that taste is the most important perception as a 1-unit increase in the perceived tastiness (on a −5 to +5 scale) of a food product leads to a $0.60 increase in willingness to pay, whereas equivalent increases in perceived health and safety lead to $0.31 and $0.21 increases, respectively.