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Willingness to Pay for Imported Beef and Risk Perception: An application of Individual-Level Parameter

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  • Lim, Kar Ho
  • Hu, Wuyang
  • Maynard, Leigh J.
  • Goddard, Ellen W.

Abstract

The controversy surrounding the Mandatory Country-of-Origin Labeling (COOL) has attracted research attentions. A number of studies have reported consumers are willing to pay more for beef labeled with U.S. origin versus beef from unknown or other origins. Despite that, relatively little is known about what motivates consumers’ preference for origin-labeled food products (Lusk et al 2006). Using Individual-Level Parameters following a mixed logit model, we found that U.S. consumers were willing to pay significantly less for imported steak from Australia and Canada compare to U.S. steak. Further, we found that the negative willingness to pay is associated strongly with consumers’ perception of food safety on the exporting country.

Suggested Citation

  • Lim, Kar Ho & Hu, Wuyang & Maynard, Leigh J. & Goddard, Ellen W., 2012. "Willingness to Pay for Imported Beef and Risk Perception: An application of Individual-Level Parameter," 2012 Annual Meeting, February 4-7, 2012, Birmingham, Alabama 119755, Southern Agricultural Economics Association.
    • Handle: RePEc:ags:saea12:119755
    DOI: 10.22004/ag.econ.119755
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    References listed on IDEAS

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    1. Stephan Marette & Roxanne Clemens & Bruce Babcock, 2008. "Recent international and regulatory decisions about geographical indications," Agribusiness, John Wiley & Sons, Ltd., vol. 24(4), pages 453-472.
    2. David Revelt and Kenneth Train., 2000. "Customer-Specific Taste Parameters and Mixed Logit: Households' Choice of Electricity Supplier," Economics Working Papers E00-274, University of California at Berkeley.
    3. Caswell, Julie A., 1998. "How Labeling of Safety and Process Attributes Affects Markets for Food," Agricultural and Resource Economics Review, Cambridge University Press, vol. 27(2), pages 151-158, October.
    4. 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.
    5. Søren Olsen, 2009. "Choosing Between Internet and Mail Survey Modes for Choice Experiment Surveys Considering Non-Market Goods," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 44(4), pages 591-610, December.
    6. Jayson L. Lusk & Jason Brown & Tyler Mark & Idlir Proseku & Rachel Thompson & Jody Welsh, 2006. "Consumer Behavior, Public Policy, and Country-of-Origin Labeling," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 28(2), pages 284-292.
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    Cited by:

    1. Ildephonse, Musafili & Oluoch-Kosura, Willis & Otieno, Jakinda, 2016. "Assessing the value farmers attach to Volcanoes National Park management atrtributes in Rwanda: a choice experiment approach," 2016 Fifth International Conference, September 23-26, 2016, Addis Ababa, Ethiopia 246273, African Association of Agricultural Economists (AAAE).
    2. Ildephonse, Musafili, 2015. "An Economic Analysis Of Farmers’ Preferences For Participatory Management Of Volcanoes National Park In Rwanda," Research Theses 265680, Collaborative Masters Program in Agricultural and Applied Economics.

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    Keywords

    Agribusiness; Agricultural and Food Policy; Food Consumption/Nutrition/Food Safety; Marketing;
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