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Market-Based Instruments for the Conservation of Underutilized Crops: In-Store Experimental Auction of Native Chili Products in Bolivia

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  • Jaqueline Garcia-Yi

    (Chair Group Agriculture and Food Economics, Technische Universität München, Alte Akademie 12, 85354 Freising, Germany)

Abstract

Native chilies ( Capsicum spp. ) are currently underutilized in Bolivia, one of this crop’s centers of diversity. Fewer local farmers cultivate native chilies annually due to low market demand. Increasing its private use value can lead to the in-situ conservation of this crop. The objective of the paper is to evaluate the market acceptability of three native chili products: (a) chili marmalade; (b) chili cooking paste; and (c) pickled chilies. Multi-product Becker-DeGroot-Marschak experimental auctions and hedonic tests were conducted with 337 participants in La Paz and Santa Cruz. Data were analyzed using seemingly unrelated regressions. Results suggest that consumers are willing to pay price premiums of about 25–50 percent. Biodiversity conservation and improvements in farmers’ quality of life statements would not have influence on first purchase decisions but rather on repurchase decisions and therefore on consumers’ product loyalty. This in turn could lead to sustainable agro-biodiversity conservation, centered on consumers’ purchase of these products over time.

Suggested Citation

  • Jaqueline Garcia-Yi, 2014. "Market-Based Instruments for the Conservation of Underutilized Crops: In-Store Experimental Auction of Native Chili Products in Bolivia," Sustainability, MDPI, vol. 6(11), pages 1-19, November.
    • Handle: RePEc:gam:jsusta:v:6:y:2014:i:11:p:7768-7786:d:41979
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    3. Dedeurwaerdere, Tom & Hannachi, Mourad, 2019. "Socio-economic drivers of coexistence of landraces and modern crop varieties in agro-biodiversity rich Yunnan rice fields," Ecological Economics, Elsevier, vol. 159(C), pages 177-188.
    4. Akaichi, Faical & Ciera, Nichola & Revoredo-Giha, Cesar, 2021. "Urban Consumers’ Preferences and Willingness to Pay for Orphan Crop Products: Evidence from a Choice Experiment on Porridge in Kenya," 2021 Conference, August 17-31, 2021, Virtual 315371, International Association of Agricultural Economists.

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