IDEAS home Printed from https://ideas.repec.org/a/eee/soceps/v87y2023ipas0038012123000071.html
   My bibliography  Save this article

Public procurement, consumers' preference and poverty alleviation through consumption

Author

Listed:
  • Zeng, Qiyan
  • He, Zhipeng
  • Zeng, Yinchu

Abstract

Challenges due to poverty immensely burden the world's progress in fulfilling sustainable development goals. Poverty alleviation through consumption (PAC) has explored a market-oriented way of poverty alleviation by transforming consumers' goodwill to help the poor into market purchasing power. This study explores the promise of PAC by utilizing a discrete choice experiment to analyze consumers' preference toward poverty alleviation products and the effect of public procurement on it based on data from China. The results confirm that individual consumers are willing to pay a premium for the attribute of poverty alleviation, and the public procurement of poverty alleviation products can further strengthen the consumers' preference for it. However, consumers still prefer the private attribute (mainly referring to quality and local specialty) over the attribute of poverty alleviation. Public procurement weakens consumers' preference for the attribute of quality, despite strengthening their preference for the local specialty attribute. These findings prove the promise of PAC from the demand side and its relevance for an efficient policy design of poverty alleviation.

Suggested Citation

  • Zeng, Qiyan & He, Zhipeng & Zeng, Yinchu, 2023. "Public procurement, consumers' preference and poverty alleviation through consumption," Socio-Economic Planning Sciences, Elsevier, vol. 87(PA).
    • Handle: RePEc:eee:soceps:v:87:y:2023:i:pa:s0038012123000071
    DOI: 10.1016/j.seps.2023.101514
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0038012123000071
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.seps.2023.101514?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Zhifeng Gao & Lisa A. House & Jing Xie, 2016. "Online Survey Data Quality and Its Implication for Willingness-to-Pay: A Cross-Country Comparison," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 64(2), pages 199-221, June.
    2. Jayson L. Lusk & F. Bailey Norwood, 2011. "Animal Welfare Economics," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 33(4), pages 463-483.
    3. Yansui Liu & Yuanzhi Guo & Yang Zhou, 2018. "Poverty alleviation in rural China: policy changes, future challenges and policy implications," China Agricultural Economic Review, Emerald Group Publishing Limited, vol. 10(2), pages 241-259, May.
    4. Ghisetti, Claudia, 2017. "Demand-pull and environmental innovations: Estimating the effects of innovative public procurement," Technological Forecasting and Social Change, Elsevier, vol. 125(C), pages 178-187.
    5. He, Guizhen & Mol, Arthur P.J. & Zhang, Lei & Lu, Yonglong, 2013. "Public participation and trust in nuclear power development in China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 23(C), pages 1-11.
    6. Dhar, Ravi, 1997. "Consumer Preference for a No-Choice Option," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 24(2), pages 215-231, September.
    7. David L. Ortega & H. Holly Wang & Nicole J. Olynk Widmar, 2015. "Effects of media headlines on consumer preferences for food safety, quality and environmental attributes," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 59(3), pages 433-445, July.
    8. Katsushi Imai & Xiaobing Wang & Woojin Kang, 2010. "Poverty and vulnerability in rural China: effects of taxation," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, vol. 8(4), pages 399-425.
    9. Edler, Jakob & Georghiou, Luke, 2007. "Public procurement and innovation--Resurrecting the demand side," Research Policy, Elsevier, vol. 36(7), pages 949-963, September.
    10. Laura O. Taylor & Ronald G. Cummings, 1999. "Unbiased Value Estimates for Environmental Goods: A Cheap Talk Design for the Contingent Valuation Method," American Economic Review, American Economic Association, vol. 89(3), pages 649-665, June.
    11. Simcoe, Timothy & Toffel, Michael W., 2014. "Government green procurement spillovers: Evidence from municipal building policies in California," Journal of Environmental Economics and Management, Elsevier, vol. 68(3), pages 411-434.
    12. van der Weele, Joël J. & von Siemens, Ferdinand A., 2020. "Bracelets of pride and guilt? An experimental test of self-signaling," Journal of Economic Behavior & Organization, Elsevier, vol. 172(C), pages 280-291.
    13. Kelvin J. Lancaster, 1966. "A New Approach to Consumer Theory," Journal of Political Economy, University of Chicago Press, vol. 74(2), pages 132-132.
    14. Clark, Beth & Stewart, Gavin B. & Panzone, Luca A. & Kyriazakis, Ilias & Frewer, Lynn J., 2017. "Citizens, consumers and farm animal welfare: A meta-analysis of willingness-to-pay studies," Food Policy, Elsevier, vol. 68(C), pages 112-127.
    15. Kenneth E. Train, 1998. "Recreation Demand Models with Taste Differences over People," Land Economics, University of Wisconsin Press, vol. 74(2), pages 230-239.
    16. Massari, Sonia & Principato, Ludovica & Antonelli, Marta & Pratesi, Carlo Alberto, 2022. "Learning from and designing after pandemics. CEASE: A design thinking approach to maintaining food consumer behaviour and achieving zero waste," Socio-Economic Planning Sciences, Elsevier, vol. 82(PA).
    17. Bolton, Gary E. & Katok, Elena, 1998. "An experimental test of the crowding out hypothesis: The nature of beneficent behavior," Journal of Economic Behavior & Organization, Elsevier, vol. 37(3), pages 315-331, November.
    18. Chen, Junlin & Zhang, Ying & Wang, Wenqing & Yang, Can & Li, Jiayue & Wu, Yulun, 2022. "The efficiency of consumption poverty alleviation and improvement measures in Guizhou, China," Energy, Elsevier, vol. 248(C).
    19. Andreoni, James, 1993. "An Experimental Test of the Public-Goods Crowding-Out Hypothesis," American Economic Review, American Economic Association, vol. 83(5), pages 1317-1327, December.
    20. Caroline Doran, 2009. "The Role of Personal Values in Fair Trade Consumption," Journal of Business Ethics, Springer, vol. 84(4), pages 549-563, February.
    21. Uyarra, Elvira & Zabala-Iturriagagoitia, Jon Mikel & Flanagan, Kieron & Magro, Edurne, 2020. "Public procurement, innovation and industrial policy: Rationales, roles, capabilities and implementation," Research Policy, Elsevier, vol. 49(1).
    22. Veronika Andorfer & Ulf Liebe, 2012. "Research on Fair Trade Consumption—A Review," Journal of Business Ethics, Springer, vol. 106(4), pages 415-435, April.
    23. Ward, Patrick S., 2016. "Transient Poverty, Poverty Dynamics, and Vulnerability to Poverty: An Empirical Analysis Using a Balanced Panel from Rural China," World Development, Elsevier, vol. 78(C), pages 541-553.
    24. Aschhoff, Birgit & Sofka, Wolfgang, 2009. "Innovation on demand--Can public procurement drive market success of innovations?," Research Policy, Elsevier, vol. 38(8), pages 1235-1247, October.
    25. Auger, Pat & Devinney, Timothy M. & Louviere, Jordan J. & Burke, Paul F., 2008. "Do social product features have value to consumers?," International Journal of Research in Marketing, Elsevier, vol. 25(3), pages 183-191.
    26. Andreoni, James, 1990. "Impure Altruism and Donations to Public Goods: A Theory of Warm-Glow Giving?," Economic Journal, Royal Economic Society, vol. 100(401), pages 464-477, June.
    27. Yansui Liu & Yuanzhi Guo & Yang Zhou, 2018. "Poverty alleviation in rural China: policy changes, future challenges and policy implications," China Agricultural Economic Review, Emerald Group Publishing Limited, vol. 10(2), pages 241-259, May.
    28. Axel Ockenfels & Gary E. Bolton, 2000. "ERC: A Theory of Equity, Reciprocity, and Competition," American Economic Review, American Economic Association, vol. 90(1), pages 166-193, March.
    29. Jeff Tollefson, 2015. "Can randomized trials eliminate global poverty?," Nature, Nature, vol. 524(7564), pages 150-153, August.
    30. McFadden, Daniel, 1974. "The measurement of urban travel demand," Journal of Public Economics, Elsevier, vol. 3(4), pages 303-328, November.
    31. Shaojie Zhou & Xiaohua Yu & Dieter Koemle, 2020. "Policy Choices For Air Pollution Abatement In Beijing: Status Quo Or Change," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 65(03), pages 715-736, June.
    32. Tiziana de-Magistris & Azucena Gracia & Rodolfo M. Nayga, 2013. "On the Use of Honesty Priming Tasks to Mitigate Hypothetical Bias in Choice Experiments," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 95(5), pages 1136-1154.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Cao, Fuguo & Li, Runyu & Guo, Shaobo, 2024. "Rhetoric and reality of public-private partnerships in China: A sustainable public procurement perspective," Socio-Economic Planning Sciences, Elsevier, vol. 92(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Korenok, Oleg & Millner, Edward L. & Razzolini, Laura, 2013. "Impure altruism in dictators' giving," Journal of Public Economics, Elsevier, vol. 97(C), pages 1-8.
    2. Krieger, Bastian & Zipperer, Vera, 2022. "Does green public procurement trigger environmental innovations?," Research Policy, Elsevier, vol. 51(6).
    3. Bodo Sturm & Joachim Weimann, 2006. "Experiments in Environmental Economics and Some Close Relatives," Journal of Economic Surveys, Wiley Blackwell, vol. 20(3), pages 419-457, July.
    4. Ding, Ye & Nayga Jr, Rodolfo M. & Zeng, Yinchu & Yang, Wei & Arielle Snell, Heather, 2022. "Consumers’ valuation of a live video feed in restaurant kitchens for online food delivery service," Food Policy, Elsevier, vol. 112(C).
    5. Lin, Wen & Nayga, Rodolfo M., 2022. "Green identity labeling, environmental information, and pro-environmental food choices," Food Policy, Elsevier, vol. 106(C).
    6. Konow, James, 2010. "Mixed feelings: Theories of and evidence on giving," Journal of Public Economics, Elsevier, vol. 94(3-4), pages 279-297, April.
    7. Chowdhury, Subhasish M. & Jeon, Joo Young, 2014. "Impure altruism or inequality aversion?: An experimental investigation based on income effects," Journal of Public Economics, Elsevier, vol. 118(C), pages 143-150.
    8. Cordula Hinkes & Inken Christoph-Schulz, 2020. "No Palm Oil or Certified Sustainable Palm Oil? Heterogeneous Consumer Preferences and the Role of Information," Sustainability, MDPI, vol. 12(18), pages 1-26, September.
    9. Haghani, Milad & Bliemer, Michiel C.J. & Rose, John M. & Oppewal, Harmen & Lancsar, Emily, 2021. "Hypothetical bias in stated choice experiments: Part II. Conceptualisation of external validity, sources and explanations of bias and effectiveness of mitigation methods," Journal of choice modelling, Elsevier, vol. 41(C).
    10. Vo Hong Tu & Steven W. Kopp & Nguyen Thuy Trang & Andreas Kontoleon & Mitsuyasu Yabe, 2021. "UK Consumers’ Preferences for Ethical Attributes of Floating Rice: Implications for Environmentally Friendly Agriculture in Vietnam," Sustainability, MDPI, vol. 13(15), pages 1-27, July.
    11. James C. Cox & Vjollca Sadiraj & Susan Xu Tang, 2020. "Morally Monotonic Choice in Public Good Games," Experimental Economics Center Working Paper Series 2020-05, Experimental Economics Center, Andrew Young School of Policy Studies, Georgia State University.
    12. Klaiman, Kimberly & Ortega, David L. & Garnache, Cloé, 2016. "Consumer preferences and demand for packaging material and recyclability," Resources, Conservation & Recycling, Elsevier, vol. 115(C), pages 1-8.
    13. James C. Cox & Vjollca Sadiraj & Susan Xu Tang, 2023. "Morally monotonic choice in public good games," Experimental Economics, Springer;Economic Science Association, vol. 26(3), pages 697-725, July.
    14. Jessica Catalano & Francesco Giffoni & Paolo Castelnovo, 2021. "The impact of space procurement on suppliers: Evidence from Italy," Working Papers 202102, CSIL Centre for Industrial Studies.
    15. Kalyuzhnova, Yelena & Azhgaliyeva, Dina & Belitski, Maksim, 2022. "Public Policy Instruments for Procurement: An Empirical Analysis," Technological Forecasting and Social Change, Elsevier, vol. 176(C).
    16. Arbel, Yuval & Bar-El, Ronen & Schwarz, Mordechai E. & Tobol, Yossef, 2019. "To What Do People Contribute? Ongoing Operations vs. Sustainable Supplies," IZA Discussion Papers 12180, Institute of Labor Economics (IZA).
    17. Sadrieh, A., 2003. "Equity versus Warm Glow in Intergenerational Giving," Other publications TiSEM 89f19483-3c73-4838-854f-9, Tilburg University, School of Economics and Management.
    18. Chan, Kenneth S. & Godby, Rob & Mestelman, Stuart & Andrew Muller, R., 2002. "Crowding-out voluntary contributions to public goods," Journal of Economic Behavior & Organization, Elsevier, vol. 48(3), pages 305-317, July.
    19. Paolo Castelnuovo & Stefano Clo & Massimo Florio, 2021. "Space policy drives innovation through technological procurement: evidence from Italy," Working Papers - Economics wp2021_08.rdf, Universita' degli Studi di Firenze, Dipartimento di Scienze per l'Economia e l'Impresa.
    20. Chavez, Daniel E. & Palma, Marco A. & Nayga Jr., Rodolfo M., 2017. "When does real become consequential in non-hypothetical choice experiments?," 2018 Annual Meeting, February 2-6, 2018, Jacksonville, Florida 266327, Southern Agricultural Economics Association.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:soceps:v:87:y:2023:i:pa:s0038012123000071. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/seps .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.