The Effects of Information on Agricultural Multifunctionality on the Consumers' Willingness-to-Pay(WTP)

Seonwoong Kim

Journal of Rural Development/Nongchon-Gyeongje, 2018, vol. 41, issue 01

Abstract: The primary objective of this paper is to determine if we can increase consumers’ willingness-to-pay (WTP) by providing them with information on agricultural multifunctionality. A survey research is conducted based on the choice experiment questionnaire. To elicit the effect of information on agricultural multifunctionality, we first measure the WTP of the treated group for attributes of paddy rice such as price, grade, certification of multifunctional agriculture, and milling date, and then compare the WTP to that of the control group. The random parameter logit (RPL) model is applied to estimate the consumers' WTP for attributes considering consumers’ preference heterogeneity. The results show that consumers who appreciate the value of agricultural multifunctionality have approximately 20% higher WTP for multifunctional agriculture than those who do not.

Keywords: Institutional; and; Behavioral; Economics (search for similar items in EconPapers)
Date: 2018
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Persistent link: https://EconPapers.repec.org/RePEc:ags:jordng:330739

DOI: 10.22004/ag.econ.330739

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