Consumer’s Willingness to Pay a Premium for Organic Fruits in China: A Double-Hurdle Analysis

Lijia Wang, Jianhua Wang and Xuexi Huo
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Lijia Wang: State Key Laboratory of Grassland Agro-Ecosystems, Key Laboratory of Grassland Livestock Industry Innovation, Ministry of Agriculture and Rural Affairs, Lanzhou University, Lanzhou 730020, China
Jianhua Wang: School of Business, Jiangnan University, Wuxi 214122, China
Xuexi Huo: College of Management and Economics, Northwest A&F University, Yangling, Xi’an 712100, China

IJERPH, 2019, vol. 16, issue 1, 1-14

Abstract: The aim of the paper was to assess how consumers evaluate organic labeled fruits and to what extent they are willing to pay a premium for fresh fruits with organic labels. A double-hurdle model is applied to data obtained by interviewing 407 fresh fruit consumers in nine Chinese cities. Willingness-to-pay a premium was modeled as a function of a series of demographic, socio-economic variables, plus fruit attributes, perceptions of fruit safety, and risk attitudes. Results indicate that the most important factors influencing willingness to pay a premium involved positive attitudes toward organic label, attention to fruit safety, the perception of importance of fruit attributes. Moreover, the more income consumers earn, the more likely they would be willing to pay a premium for organic fresh fruits. The recorded consumer interest in safety and quality of fresh fruits reveals that a promising market for organic fruits could be developed by an adequate knowledge on organic label and an effective market monitoring system.

Keywords: organic fruits; China; double-hurdle model; premium; willingness to pay (search for similar items in EconPapers)
JEL-codes: I I1 I3 Q Q5 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

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