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Consumers' Valuation of Geographical Indication‐Labeled Food: The Case of Hom Mali Rice in Bangkok

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  • Ji Yong Lee
  • Noppawong Pavasopon
  • Orachos Napasintuwong
  • Rodolfo M. Nayga

Abstract

This study investigated consumers' valuation of geographical indication (GI) and protected geographical indication (PGI)‐labeled rice in Bangkok using a non‐hypothetical experimental auction in a field setting. We also examined the effects of sequentially providing information about geographical indications on product valuation. The results suggest that consumers are willing to pay premiums for rice with geographical certifications, with the highest premium for the rice with both GI and PGI certifications. The provision of detailed information about the geographical indications further increases the premiums. However, consumers suffer a welfare loss under the current high market prices for rice with geographical certifications. A price reduction of approximately 10 percent would be needed to gain consumer welfare from the introduction of GI and PGI certification.

Suggested Citation

  • Ji Yong Lee & Noppawong Pavasopon & Orachos Napasintuwong & Rodolfo M. Nayga, 2020. "Consumers' Valuation of Geographical Indication‐Labeled Food: The Case of Hom Mali Rice in Bangkok," Asian Economic Journal, East Asian Economic Association, vol. 34(1), pages 79-96, March.
    • Handle: RePEc:bla:asiaec:v:34:y:2020:i:1:p:79-96
    DOI: 10.1111/asej.12196
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    References listed on IDEAS

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    2. Subir Bairagi & Marie Claire Custodio & Alvaro Durand-Morat & Matty Demont, 2021. "Preserving cultural heritage through the valorization of Cordillera heirloom rice in the Philippines," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 38(1), pages 257-270, February.

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