Households’ Willingness-to-Pay for Fish Product Attributes and Implications for Market Feasibility of Wastewater-Based Aquaculture Businesses in Hanoi, Vietnam

Abstract

A choice experiment was used to assess households' willingness-to-pay (WTP) for informational attributes (sources of water used to rear fish, and certification) of fish products in Hanoi, Vietnam. The study showed that households' purchasing decisions are influenced by their access to information of food product attributes and ascribe an economic value to it. The results indicated that households are willing to pay 51% (USD 1.11 per kg) above the prevailing market price of fish for information to know if wastewater is used to rear the fish they consume. Similarly, they are willing to pay 20% above the prevailing market price of fish (USD 0.43 per kg) to know if freshwater is used as a rearing medium. It is important to note that the increased marginal WTP is for information on whether the fish they consume is raised in wastewater over freshwater. This supports the notion of households' concern over the safety of consuming wastewater-raised fish. Households are also willing to pay 65% (USD 1.42 per kg) above the prevailing market price for certified fish. Based on the cost of fish certification and WTP estimates, we found a total economic benefit of USD 172 million for the implementation of a wastewater-raised fish business model in Hanoi. The demand for wastewater-raised fish is likely to be affected by households' perception of certification by a trusted government agency, source of water used to raise the fish, age, income and household size.

Investigating Fish Contamination Scenario and Community Willingness to Adopt Consumption Advice Proposing an Advisory Model

“…In this study, consumers also confirmed their perception that fish consumption is beneficial, expressing moderate (47.8%) to high (37.8%) affirmation of the perceived benefits of consuming fish. This observed consumer perception is similar to other earlier observations reported for the fish-consuming population of Hanoi (Danso et al 2017). Furthermore, the importance of consuming fish has been noted for people who live near Lake Victoria: 98.4% of the interviewed consumers indicated that the inclusion of fish in their diet provided health benefits (Wenaty et al 2018).…”

“…This opinion has also been addressed by a previous study (Myrland et al 2000). On the other hand, some studies confirmed that there was no difference in fish consumption based on educational status, and highly educated consumers thought of fish as a "difficultto-prepare" food (Myrland et al 2000;Danso et al 2017). Furthermore, income can influence healthy eating practices and has an impact on fish consumption.…”

“…A more recent study found that fish was mostly consumed by adults aged over 45, compared to other age groups (Wenaty et al 2018). There is no doubt that consumers' health concerns are a driver of increased fish consumption frequency (Danso et al 2017). Concern about the safety of food has attracted consumer attention for many years and it was reported that a lack of access to high-quality fish leads to constraints on consumption (Myrland et al 2000).…”

“…This study also found that availability of knowledge is an important factor determining fish consumption behaviour. It was also reported that consumers frequently eat fish if they believe that sustainable food is healthy (Danso et al 2017). Therefore, making information available can play an important role in promoting the healthy consumption of fish.…”

Economic valuation of Nile Tilapia (Oreochromis niloticus) in Lake Hawassa, Southern Ethiopia

“…In the study of consumers" willingness to pay for sustainable seafood made in Europe, Zander and Feucht (2018) find a positive attitude of participants toward sustainability in fisheries stating that protection of endangered species, no pollution, and absence of drugs and hormones in production and fishing are the most important issues from the consumer perspective. In the study of households" willingness to pay for fish product in Vietnam, Danso et al (2017) find that households are willing to pay 65% (USD 1.42 per kg) above the prevailing market price for certified fish, which supports the notion of households" concern over the safety of consuming wastewater-raised fish.…”