IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/84100.html
   My bibliography  Save this paper

Willingness to Pay for Government-Certified Agri-Products in South Korea

Author

Listed:
  • Lin, Yu-Hsuan
  • Kim, KyungJa

Abstract

This study investigated the value that government-issued certification labels adds to agricultural products. Using a face-to-face questionnaire administered in the Greater Seoul area, it assessed consumers’willingness to pay for government certification labels on four types of agri-products. Our results indicated that the premium for goods with these labels ranged from 7 to 32 per cent above the prices of non-certified products of the same types, while organic certificates for meat products earned higher willingness-to-pay scores than other certificate types. This clearly indicates the importance of such certification schemes to South Korean consumers. 본 연구에서는 다양한 정부인증마크가 부착된 농축산물에 대한 소비자 지불의도를 파악하고자 하였다. 이를 위해 수도권 지역 주부 소비자 306 명을 설문지를 이용한 대면면접 방식으로 조사하였다. 조사대상 농축산물은 곡류(쌀), 과일(사과), 채소(배추), 축산물(쇠고기)를 선정하고 인증마크가 없는 농축산물의 기준가격을 제시한 다음 유기농 마크와 우수농산물마크(GAP), 지리적 표시(GIS) 생산자이력추적 표시(APTMS)가 부착된 농축산물에 대한 추가지불의도(WTP)를 각각 측정하였다. 조사결과 인증마크가 부착된 농축산물에 대한 추가지불의도는 인증마크 미부착 농축산물에 비해 7~32% 높게 나타났다. 인증마크별로는 유기농 인증에 대한 지불의사가 가장 높았고 품목별로는 축산물에 대한 지불의사가 가장 높았다. 인증마크와 품목별 지불의사에 영향을 미치는 요소들도 또한 분석하였다.

Suggested Citation

  • Lin, Yu-Hsuan & Kim, KyungJa, 2017. "Willingness to Pay for Government-Certified Agri-Products in South Korea," MPRA Paper 84100, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:84100
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/84100/1/MPRA_paper_84100.pdf
    File Function: original version
    Download Restriction: no
    File URL: https://mpra.ub.uni-muenchen.de/86486/1/MPRA_paper_84100.pdf
    File Function: revised version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Hirotsugu Uchida & Cathy A. Roheim & Hiroki Wakamatsu & Christopher M. Anderson, 2014. "Do Japanese consumers care about sustainable fisheries? Evidence from an auction of ecolabelled seafood," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 58(2), pages 263-280, April.
    2. Dickinson, David L. & Bailey, DeeVon, 2005. "Experimental Evidence on Willingness to Pay for Red Meat Traceability in the United States, Canada, the United Kingdom, and Japan," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 37(3), pages 1-12, December.
    3. Douadia Bougherara & Pierre Combris, 2009. "Eco-labelled food products: what are consumers paying for?," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 36(3), pages 321-341, September.
    4. Chris Arnot & Peter C. Boxall & Sean B. Cash, 2006. "Do Ethical Consumers Care About Price? A Revealed Preference Analysis of Fair Trade Coffee Purchases," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 54(4), pages 555-565, December.
    5. Celine Michaud & Daniel Llerena & Iragael Joly, 2013. "Willingness to pay for environmental attributes of non-food agricultural products: a real choice experiment," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 40(2), pages 313-329, March.
    6. repec:feb:natura:0061 is not listed on IDEAS
    7. Aguilar, Francisco X. & Cai, Zhen, 2010. "Conjoint effect of environmental labeling, disclosure of forest of origin and price on consumer preferences for wood products in the US and UK," Ecological Economics, Elsevier, vol. 70(2), pages 308-316, December.
    8. Aguilar, Francisco X. & Vlosky, Richard P., 2007. "Consumer willingness to pay price premiums for environmentally certified wood products in the U.S," Forest Policy and Economics, Elsevier, vol. 9(8), pages 1100-1112, May.
    9. Tully, Stephanie M. & Winer, Russell S., 2014. "The Role of the Beneficiary in Willingness to Pay for Socially Responsible Products: A Meta-analysis," Journal of Retailing, Elsevier, vol. 90(2), pages 255-274.
    10. van Kempen, Luuk & Muradian, Roldan & Sandóval, César & Castañeda, Juan-Pablo, 2009. "Too poor to be green consumers? A field experiment on revealed preferences for firewood in rural Guatemala," Ecological Economics, Elsevier, vol. 68(7), pages 2160-2167, May.
    11. Cathy R. Wessells & Robert J. Johnston & Holger Donath, 1999. "Assessing Consumer Preferences for Ecolabeled Seafood: The Influence of Species, Certifier, and Household Attributes," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 81(5), pages 1084-1089.
    12. Asche, Frank & Larsen, Thomas A. & Smith, Martin D. & Sogn-Grundvåg, Geir & Young, James A., 2015. "Pricing of eco-labels with retailer heterogeneity," Food Policy, Elsevier, vol. 53(C), pages 82-93.
    13. Latvala, Terhi & Kola, Jukka, 2004. "Consumers' Willingness to Pay for Additional Information on Food Quality and Safety," 84th Seminar, February 8-11, 2004, Zeist, The Netherlands 24980, European Association of Agricultural Economists.
    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. Deely, John & Hynes, Stephen & Barquín, José & Burgess, Diane & Álvarez-Martínez, Jose Manuel & Silió, Ana & Finney, Graham, 2022. "Are consumers willing to pay for beef that has been produced without the use of uncontrolled burning methods? A contingent valuation study in North-West Spain," Economic Analysis and Policy, Elsevier, vol. 75(C), pages 577-590.

    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. Vásquez Lavin, Felipe & Barrientos, Manuel & Castillo, Álvaro & Herrera, Iván & Ponce Oliva, Roberto D., 2020. "Firewood certification programs: Key attributes and policy implications," Energy Policy, Elsevier, vol. 137(C).
    2. Hallstein, Eric & Villas-Boas, Sofia B., 2013. "Can household consumers save the wild fish? Lessons from a sustainable seafood advisory," Journal of Environmental Economics and Management, Elsevier, vol. 66(1), pages 52-71.
    3. Tully, Stephanie M. & Winer, Russell S., 2014. "The Role of the Beneficiary in Willingness to Pay for Socially Responsible Products: A Meta-analysis," Journal of Retailing, Elsevier, vol. 90(2), pages 255-274.
    4. Volker Lingnau & Florian Fuchs & Florian Beham, 2019. "The impact of sustainability in coffee production on consumers’ willingness to pay–new evidence from the field of ethical consumption," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 30(1), pages 65-93, April.
    5. Higgins, Kieran & Hutchinson, W. George & Longo, Alberto, 2020. "Willingness-to-Pay for Eco-Labelled Forest Products in Northern Ireland: An Experimental Auction Approach," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 87(C).
    6. Hallstein, Eric & Villas-Boas, Sofia Berto, 2009. "Are Consumers Color Blind?: an empirical investigation of a traffic light advisory for sustainable seafood," CUDARE Working Papers 120535, University of California, Berkeley, Department of Agricultural and Resource Economics.
    7. Chen, Xuqi & Gao, Zhifeng & Swisher, Marilyn & House, Lisa & Zhao, Xin, 2018. "Eco-labeling in the Fresh Produce Market: Not All Environmentally Friendly Labels Are Equally Valued," Ecological Economics, Elsevier, vol. 154(C), pages 201-210.
    8. Nadia Palmieri & Alessandro Suardi & Francesco Latterini & Luigi Pari, 2020. "The Eucalyptus Firewood: Understanding Consumers’ Behaviour and Motivations," Agriculture, MDPI, vol. 10(11), pages 1-12, October.
    9. Disdier, Anne-Célia & Marette, Stéphan, 2012. "How do consumers in developed countries value the environment and workers’ social rights in developing countries?," Food Policy, Elsevier, vol. 37(1), pages 1-11.
    10. Nadia Palmieri & Alessandro Suardi & Luigi Pari, 2020. "Italian Consumers’ Willingness to Pay for Eucalyptus Firewood," Sustainability, MDPI, vol. 12(7), pages 1-14, March.
    11. Bronnmann, Julia & Asche, Frank, 2017. "Sustainable Seafood From Aquaculture and Wild Fisheries: Insights From a Discrete Choice Experiment in Germany," Ecological Economics, Elsevier, vol. 142(C), pages 113-119.
    12. Yokessa, Maïmouna & Marette, Stéphan, 2019. "A Review of Eco-labels and their Economic Impact," International Review of Environmental and Resource Economics, now publishers, vol. 13(1-2), pages 119-163, April.
    13. Hubert Paluš & Ján Parobek & Rastislav Šulek & Ján Lichý & Jaroslav Šálka, 2018. "Understanding Sustainable Forest Management Certification in Slovakia: Forest Owners’ Perception of Expectations, Benefits and Problems," Sustainability, MDPI, vol. 10(7), pages 1-17, July.
    14. Asche, Frank & Larsen, Thomas A. & Smith, Martin D. & Sogn-Grundvåg, Geir & Young, James A., 2015. "Pricing of eco-labels with retailer heterogeneity," Food Policy, Elsevier, vol. 53(C), pages 82-93.
    15. H. Holly Wang & Jing Yang & Na Hao, 2022. "Consumers’ Willingness to Pay for Rice from Remediated Soil: Potential from the Public in Sustainable Soil Pollution Treatment," IJERPH, MDPI, vol. 19(15), pages 1-22, July.
    16. Aguilar, Francisco X. & Cai, Zhen & Mohebalian, Phillip & Thompson, Wyatt, 2015. "Exploring the drivers' side of the “blend wall”: U.S. consumer preferences for ethanol blend fuels," Energy Economics, Elsevier, vol. 49(C), pages 217-226.
    17. Florence TOUYA, 2019. "Relevance of Potential Supply Structures in Frameworks involving Consumer's private Information: the Case of Fair Trade," Working Papers 2018-2019_12, CATT - UPPA - Université de Pau et des Pays de l'Adour, revised Aug 2019.
    18. Schumacher, Ingmar, 2010. "Ecolabeling, consumers' preferences and taxation," Ecological Economics, Elsevier, vol. 69(11), pages 2202-2212, September.
    19. John Cranfield & Spencer Henson & James Northey & Oliver Masakure, 2010. "An assessment of consumer preference for fair trade coffee in Toronto and Vancouver," Agribusiness, John Wiley & Sons, Ltd., vol. 26(2), pages 307-325.
    20. Yamamoto, Yuki & Takeuchi, Kenji & Shinkuma, Takayoshi, 2014. "Is there a price premium for certified wood? Empirical evidence from log auction data in Japan," Forest Policy and Economics, Elsevier, vol. 38(C), pages 168-172.

    More about this item

    Keywords

    certification system; Korean agri-product market; Willingness to pay; contingent valuation method (CVM);
    All these keywords.

    JEL classification:

    • C83 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Survey Methods; Sampling Methods
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    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:pra:mprapa:84100. 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: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    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.