Information, Certification and Demand for Food Safety: Evidence from an In‐store Experiment in Mumbai. (10th November 2014)

• Record Type: Journal Article
• Authors: Birol, Ekin; Karandikar, Bhushana; Roy, Devesh; Torero, Maximo
• Is Part Of: Journal of agricultural economics. Volume 66:Number 2(2015)
• Page Start: 470
• Page End: 491
• Publication Date: 2014-11-10
• Subjects: certification -- credible information -- factor analysis -- food safety -- grapes -- Mumbai -- randomised and controlled market experiment -- willingness to pay; Agriculture -- Economic aspects -- Periodicals; 338.1
• DOI: 10.1111/1477-9552.12089
• Languages: English
• ISSNs: 0021-857X

Abstract

Abstract: Is demand for safe food in developing countries low because of limited ability to pay, or because of lack of consumer awareness and absence of credible certification? To answer this question we conducted a controlled market experiment in Mumbai, India, selling grapes with credible certification labels alongside unlabeled grapes while providing randomly selected consumers with information on salient features of food safety certification. We confirm that informed consumers are more likely to purchase labeled grapes, controlling for prior information and attitudes, and using two (intensive versus extensive) information treatments. Policies related to information/certification could be an important component of improving public health by mobilising latent demand for food safety and hence supply of safer food for the public.