Consumer Preference for Sustainable Attributes in Plants: Evidence from Experimental Auctions. Issue 2 (30th June 2015)

• Record Type: Journal Article
• Authors: Yue, Chengyan; Campbell, Ben; Hall, Charles; Behe, Bridget; Dennis, Jennifer; Khachatryan, Hayk
• Is Part Of: Agribusiness. Volume 32:Issue 2(2016)
• Page Start: 222
• Page End: 235
• Publication Date: 2015-06-30
• Subjects: Agriculture -- Economic aspects -- Periodicals; Agriculture -- Finance -- Periodicals; Agricultural industries -- Periodicals; Agriculture -- Economic aspects -- United States -- Periodicals; Agriculture -- United States -- Finance -- Periodicals; Agricultural industries -- United States -- Periodicals; 338.1
• DOI: 10.1002/agr.21435
• Languages: English
• ISSNs: 0742-4477

Abstract

ABSTRACT: Experimental auctions were employed to investigate U.S. and Canadian consumers' willingness to pay for sustainable attributes in plants. The results show consumers are willing to pay a price premium for energy and water savings in plant production of $0.15 and $0.12, respectively. Consumers are only willing to pay $0.08 more for sustainably labeled product. Latent class segmentation analysis identifies three distinct consumer segments: Import‐Liking, Mainstream, and Eco‐local . Mainstream Consumers were the largest segment and willing to pay only modest premiums for eco‐friendly attributes. Eco‐local consumers comprised 14% of consumers and they were willing to pay the highest amount for the improved production methods and container types, while having the highest willing to pay for local and domestic products. [EconLit citations: D44, M31].