Willingness to pay for organic and fairtrade certified yellow chili peppers

Abstract

Purpose -The purpose of this paper is to evaluate the consumers' preferences in middle-and highincome districts in Lima for three organic and Fairtrade certification attributes: environmental protection, production without pesticides, and improvement in the quality of life of farmers. Yellow chili pepper was used as case study. Design/methodology/approach -A survey of 183 households was conducted among the population located in middle and high income districts in Lima, because of their higher ability to pay. Choice experiment data were analysed using random parameter logit models (RPM) with and without interaction effects. Findings -The results suggest that there is a statistically significant willingness to pay for organic and Fairtrade certification attributes (ranging from S/4.4 to 9.3). The results also indicate that the higher the income the higher the willingness to pay for yellow chili peppers grown without pesticides. Originality/value -The results provide support that willingness to pay values for particular food certification attributes are statistically significantly associated with the ability to pay even among the middle and high income population in Lima. This positive association between willingness to pay and income is not always present among the general population in developed countries. As such, the demand for certified products would be especially associated with the overall economic growth of the emerging and developing country under consideration.

Comparing stated and realized preferences for shade‐grown vs. conventionally grown coffee

“…Mean and median WTP from both stated and realized preference methods were positive, indicating respondents’ demand for the environmental attribute of shade‐grown coffee. Our results are consistent with other studies indicating a high stated WTP for social and environmental attributes (Bearse, ; D'Souza, Taghian, & Lamb, ; Didier & Lucie, ; Garcia‐Yi, ; Rousseau, ). Approximately a fifth of the mean WTP for natural, regionally produced beef was explained by concern for supporting local agriculture and environmental benefits (Umberger, McFadden, & Smith, ).…”

Consumer Preferences of Sustainability Labeled Cut Roses in Germany

“…In general, the high consumer acceptance of organic labels which can be observed for the food market in Germany [7,69] does not seem to correspond with analogous consumers' preferences for non-edible organic products. As some studies related to the food sector showed that consumers' preference for an organic label mainly depend on their perceived positive health aspects [24,25,70], it can be assumed that health aspects are being less important related to non-edible products like cut roses thus leading to lower preferences of the Bioland labelled roses. Additionally, Loureiro and Lotade [71] argued that consumers were not quite aware or could barely imagine the environmental impact of coffee cultivations in distant regions, what might be also transferable to the analyzed cut roses.…”

Effect of Environmental and Altruistic Attitudes on Willingness-to-Pay for Organic and Fair Trade Coffee in Flanders

“…Moreover, there is no conclusion on whether WTP for fair trade is lower (or higher) than that of organic label. More specifically, while both Rousseau [33] and Loureiro et al [35] reported higher premiums for the fair trade label in the Belgian chocolate and the American coffee consumers respectively, organic label was reported to have higher premiums by both Van Loo et al [36] (US coffee consumers) and Garcia-Yi [48] (Peruvian yellow chili peppers consumers). Yet still, Didier et al [40] obtained similar premiums for the two labels in the French chocolate consumers.…”

“…Some other studies have studied fair trade and organic labels simultaneously [33][34][35][36]40,42,[47][48][49]. These studies have been motivated by several factors.…”