Consumer Willingness to Pay for Preservative-Free Food: The Case of Beijing

Xiaohua Yu, Yinchu Zeng () and Yuanyuan Liu
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Yuanyuan Liu: Renmin University of China

No 70, Courant Research Centre: Poverty, Equity and Growth - Discussion Papers from Courant Research Centre PEG

Abstract: Consumers are facing a trade-off between the benefits of an increase in the length of the shelf life of food, such as low food costs, and the potential health damages caused by food preservatives. However, few studies in the current literature place emphasis on food preservatives, neither from a scientific perspective nor from an economic perspective. This causes a lot of controversies about government regulations. By constructing a theoretical framework and using a survey of 293 customers from 25 supermarkets in Beijing, this paper studies the consumer attitude towards food preservatives and attempts to fill the gap in the current literature. The main findings include that food price, and consumers’ age and income are important for the willingness to pay (WTP) for “preservative-free food” in Beijing. In particular, food price and consumer incomes are positively correlated with the WTP and there might be an inverted U-shaped relationship between age and WTP. This study indicates that consumers in Beijing are willing to pay a very high premium for preservative-free food —62% for preservative-free Mooncakes compared to conventional ones.

Keywords: Preservative-Free Food; Willingness to Pay; Double-Bounded Dichotomous Choice; Mooncakes; Beijing (search for similar items in EconPapers)
JEL-codes: I12 Q18 (search for similar items in EconPapers)
Date: 2011-02-08
New Economics Papers: this item is included in nep-agr, nep-cis and nep-mkt
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:got:gotcrc:070

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