IDEAS home Printed from https://ideas.repec.org/a/gam/jresou/v6y2017i3p30-d105511.html
   My bibliography  Save this article

Households’ Willingness-to-Pay for Fish Product Attributes and Implications for Market Feasibility of Wastewater-Based Aquaculture Businesses in Hanoi, Vietnam

Author

Listed:
  • George K. Danso

    (Ministry of Health and Wellness, Government of Alberta, 10025 Jasper Avenue, Edmonton, AB T5J1S6, Canada)

  • Miriam Otoo

    (Resource Recovery and Reuse, Water Quality and Health Research Group, International Water Management Institute (IWMI), P. O. Box 2075, Colombo 10120, Sri Lanka)

  • Nguyen Duy Linh

    (Vietnam National University of Agriculture (VNUA), Trau Quy, Gia Lan, Hanoi, Vietnam)

  • Ganesha Madurangi

    (Resource Recovery and Reuse, Water Quality and Health Research Group, International Water Management Institute (IWMI), P. O. Box 2075, Colombo 10120, Sri Lanka)

Abstract

A choice experiment was used to assess households’ willingness-to-pay (WTP) for informational attributes (sources of water used to rear fish, and certification) of fish products in Hanoi, Vietnam. The study showed that households’ purchasing decisions are influenced by their access to information of food product attributes and ascribe an economic value to it. The results indicated that households are willing to pay 51% (USD 1.11 per kg) above the prevailing market price of fish for information to know if wastewater is used to rear the fish they consume. Similarly, they are willing to pay 20% above the prevailing market price of fish (USD 0.43 per kg) to know if freshwater is used as a rearing medium. It is important to note that the increased marginal WTP is for information on whether the fish they consume is raised in wastewater over freshwater. This supports the notion of households’ concern over the safety of consuming wastewater-raised fish. Households are also willing to pay 65% (USD 1.42 per kg) above the prevailing market price for certified fish. Based on the cost of fish certification and WTP estimates, we found a total economic benefit of USD 172 million for the implementation of a wastewater-raised fish business model in Hanoi. The demand for wastewater-raised fish is likely to be affected by households’ perception of certification by a trusted government agency, source of water used to raise the fish, age, income and household size.

Suggested Citation

  • George K. Danso & Miriam Otoo & Nguyen Duy Linh & Ganesha Madurangi, 2017. "Households’ Willingness-to-Pay for Fish Product Attributes and Implications for Market Feasibility of Wastewater-Based Aquaculture Businesses in Hanoi, Vietnam," Resources, MDPI, vol. 6(3), pages 1-22, July.
    • Handle: RePEc:gam:jresou:v:6:y:2017:i:3:p:30-:d:105511
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2079-9276/6/3/30/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2079-9276/6/3/30/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Simon Chege Kimenju & Hugo De Groote, 2008. "Consumer willingness to pay for genetically modified food in Kenya," Agricultural Economics, International Association of Agricultural Economists, vol. 38(1), pages 35-46, January.
    2. Marschke, Melissa & Wilkings, Ann, 2014. "Is certification a viable option for small producer fish farmers in the global south? Insights from Vietnam," Marine Policy, Elsevier, vol. 50(PA), pages 197-206.
    3. Esther Bekker-Grob & Bas Donkers & Marcel Jonker & Elly Stolk, 2015. "Sample Size Requirements for Discrete-Choice Experiments in Healthcare: a Practical Guide," The Patient: Patient-Centered Outcomes Research, Springer;International Academy of Health Preference Research, vol. 8(5), pages 373-384, October.
    4. Ubilava, David & Foster, Kenneth, 2009. "Quality certification vs. product traceability: Consumer preferences for informational attributes of pork in Georgia," Food Policy, Elsevier, vol. 34(3), pages 305-310, June.
    5. Erik Meijer & Jan Rouwendal, 2006. "Measuring welfare effects in models with random coefficients," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 21(2), pages 227-244, March.
    6. Jayson L. Lusk & Darren Hudson, 2004. "Willingness-to-Pay Estimates and Their Relevance to Agribusiness Decision Making," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 26(2), pages 152-169.
    7. Adam Drucker, 2007. "Measuring Heterogeneous Preferences for Cattle Traits among Cattle-Keeping Households in East Africa," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 89(4), pages 1005-1019.
    8. Jayson L. Lusk & Ted C. Schroeder, 2004. "Are Choice Experiments Incentive Compatible? A Test with Quality Differentiated Beef Steaks," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(2), pages 467-482.
    9. Train,Kenneth E., 2009. "Discrete Choice Methods with Simulation," Cambridge Books, Cambridge University Press, number 9780521747387, November.
    10. Wendy J. Umberger & Dillon M. Feuz, 2004. "The Usefulness of Experimental Auctions in Determining Consumers' Willingness-to-Pay for Quality-Differentiated Products," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 26(2), pages 170-185.
    11. Peter Boxall & Wiktor Adamowicz, 2002. "Understanding Heterogeneous Preferences in Random Utility Models: A Latent Class Approach," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 23(4), pages 421-446, December.
    12. Robert Fonner, 2015. "Willingness to Pay for Multiple Seafood Labels in a Niche Market," Marine Resource Economics, University of Chicago Press, vol. 30(1), pages 51-70.
    13. Wiktor Adamowicz & Peter Boxall & Michael Williams & Jordan Louviere, 1998. "Stated Preference Approaches for Measuring Passive Use Values: Choice Experiments and Contingent Valuation," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(1), pages 64-75.
    14. Kenneth E. Train, 1998. "Recreation Demand Models with Taste Differences over People," Land Economics, University of Wisconsin Press, vol. 74(2), pages 230-239.
    15. Krinsky, Itzhak & Robb, A Leslie, 1986. "On Approximating the Statistical Properties of Elasticities," The Review of Economics and Statistics, MIT Press, vol. 68(4), pages 715-719, November.
    16. Nguyen, Quang & Leung, PingSun, 2009. "Do Fishermen Have Different Attitudes Toward Risk? An Application of Prospect Theory to the Study of Vietnamese Fishermen," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 34(3), pages 1-21, December.
    17. Ortega, David L. & Wang, H. Holly & Wu, Laping & Olynk, Nicole J., 2011. "Modeling heterogeneity in consumer preferences for select food safety attributes in China," Food Policy, Elsevier, vol. 36(2), pages 318-324, April.
    Full references (including those not matched with items on IDEAS)

    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. Danso, G. K. & Otoo, Miriam & Duy Linh, N. & Madurangi, Ganesha, "undated". "Households’ willingness-to-pay for fish product attributes and implications for market feasibility of wastewater-based aquaculture businesses in Hanoi, Vietnam," Papers published in Journals (Open Access) H048216, International Water Management Institute.
    2. George K. Danso & Miriam Otoo & William Ekere & Stanley Ddungu & Ganesha Madurangi, 2017. "Market Feasibility of Faecal Sludge and Municipal Solid Waste-Based Compost as Measured by Farmers’ Willingness-to-Pay for Product Attributes: Evidence from Kampala, Uganda," Resources, MDPI, vol. 6(3), pages 1-17, July.
    3. Danso, G. K. & Otoo, Miriam & Ekere, W. & Ddungu, S. & Madurangi, Ganesha, "undated". "Market feasibility of faecal sludge and municipal solid waste-based compost as measured by farmers’ willingness-to-pay for product attributes: evidence from Kampala, Uganda," Papers published in Journals (Open Access) H048217, International Water Management Institute.
    4. Ortega, David L. & Wang, H. Holly & Wu, Laping & Olynk, Nicole J., 2011. "Modeling heterogeneity in consumer preferences for select food safety attributes in China," Food Policy, Elsevier, vol. 36(2), pages 318-324, April.
    5. Carnegie, Rachel & Wang, Holly & Widmar, Nicole & Ortega, David, 2014. "Consumer Preferences for Quality and Safety Attributes of Duck in Restaurant Entrees: Is China A Viable Market for The U.S. Duck Industry?," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 170717, Agricultural and Applied Economics Association.
    6. Haghani, Milad & Bliemer, Michiel C.J. & Hensher, David A., 2021. "The landscape of econometric discrete choice modelling research," Journal of choice modelling, Elsevier, vol. 40(C).
    7. Tonsor, Glynn T. & Olynk, Nicole & Wolf, Christopher, 2009. "Consumer Preferences for Animal Welfare Attributes: The Case of Gestation Crates," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 41(3), pages 713-730, December.
    8. Shijiu Yin & Shanshan Lv & Yusheng Chen & Linhai Wu & Mo Chen & Jiang Yan, 2018. "Consumer preference for infant milk‐based formula with select food safety information attributes: Evidence from a choice experiment in China," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 66(4), pages 557-569, December.
    9. Craig E. Landry & Paul Hindsley & Okmyung Bin & Jamie B. Kruse & John C. Whitehead & Ken Wilson, 2011. "Weathering the Storm: Measuring Household Willingness‐to‐Pay for Risk‐Reduction in Post‐Katrina New Orleans," Southern Economic Journal, John Wiley & Sons, vol. 77(4), pages 991-1013, April.
    10. Domenico Carlucci & Biagia De Devitiis & Gianluca Nardone & Fabio Gaetano Santeramo, 2017. "Certification Labels Versus Convenience Formats: What Drives the Market in Aquaculture Products?," Marine Resource Economics, University of Chicago Press, vol. 32(3), pages 295-310.
    11. Wang, Shuxian & Wu, Linhai & Zhu, Dian & Wang, Hongsha & Xu, Lingling, 2014. "Chinese consumers’ preferences and willingness to pay for traceable food attributes: The case of pork," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 165639, Agricultural and Applied Economics Association.
    12. Wu, Linhai & Wang, Shuxian & Zhu, Dian & Hu, Wuyang & Wang, Hongsha, 2015. "Chinese consumers’ preferences and willingness to pay for traceable food quality and safety attributes: The case of pork," China Economic Review, Elsevier, vol. 35(C), pages 121-136.
    13. Angel Bujosa & Antoni Riera & Robert Hicks, 2010. "Combining Discrete and Continuous Representations of Preference Heterogeneity: A Latent Class Approach," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 47(4), pages 477-493, December.
    14. Carlucci, Domenico & Dedevitiis, Biagia & Nardone, Gianluca & Santeramo, Fabio Gaetano, 2016. "Certification Labels Vs Convenience Formats: What drives the market in aquaculture products?," MPRA Paper 75448, University Library of Munich, Germany.
    15. Ortega, David L. & Wang, H. Holly & Wu, Laping & Hong, Soo Jeong, 2015. "Retail channel and consumer demand for food quality in China," China Economic Review, Elsevier, vol. 36(C), pages 359-366.
    16. Wongprawmas, Rungsaran & Canavari, Maurizio, 2015. "Heterogeneity in consumer preferences for food safety lavel in Thailand," 143rd Joint EAAE/AAEA Seminar, March 25-27, 2015, Naples, Italy 202744, European Association of Agricultural Economists.
    17. Faustin, Vidogbèna & Adégbidi, Anselme A. & Garnett, Stephen T. & Koudandé, Delphin O. & Agbo, Valentin & Zander, Kerstin K., 2010. "Peace, health or fortune?: Preferences for chicken traits in rural Benin," Ecological Economics, Elsevier, vol. 69(9), pages 1848-1857, July.
    18. Mohammed H. Alemu & Søren B. Olsen, 2017. "Can a Repeated Opt-Out Reminder remove hypothetical bias in discrete choice experiments? An application to consumer valuation of novel food products," IFRO Working Paper 2017/05, University of Copenhagen, Department of Food and Resource Economics.
    19. Wongprawmas, Rungsaran & Canavari, Maurizio, 2017. "Consumers’ willingness-to-pay for food safety labels in an emerging market: The case of fresh produce in Thailand," Food Policy, Elsevier, vol. 69(C), pages 25-34.
    20. Jayson Lusk & Tomas Nilsson & Ken Foster, 2007. "Public Preferences and Private Choices: Effect of Altruism and Free Riding on Demand for Environmentally Certified Pork," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 36(4), pages 499-521, April.

    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:gam:jresou:v:6:y:2017:i:3:p:30-:d:105511. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.