Analysis of the difference in consumer willingness to pay for organic vegetables in urban and rural areas in Hamedan-Iran

Abstract

The purpose of this study is to investigate the differences in willingness to pay for organic vegetables in urban and rural areas and their affecting factors in the city of Hamadan and surrounding rural areas. The data of this study were collected through a questionnaire and interviews with rural-urban consumers in the Hamadan County-Iran in 2019. To estimate the amount of WTP, contingent valuation method, Double-Bounded Dichotomous and One-and-One-Half-Bounded Dichotomous Choice approaches were used. The results of this study indicated that both in the urban area and in the surrounding rural areas, there is a potential market for organic vegetables, but urban residents showed higher willingness to pay than the people rural areas. Consumer awareness of the benefits of organic vegetables and the harms of inorganic products and also household monthly income had a positive and significant effect on the willingness to pay for organic vegetables in both urban and rural areas, and trust in labelling did not affect WTP. According to the results of this study, due to differences in the preferences of rural-urban consumers, these areas should not be considered as a homogeneous group in the development of organic food policies