Households’ Willingness-to-Pay for Fish Product Attributes and Implications for Market Feasibility of Wastewater-Based Aquaculture Businesses in Hanoi, Vietnam

George K. Danso, Miriam Otoo, Nguyen Duy Linh and Ganesha Madurangi
Additional contact information
George K. Danso: Ministry of Health and Wellness, Government of Alberta, 10025 Jasper Avenue, Edmonton, AB T5J1S6, Canada
Miriam Otoo: Resource Recovery and Reuse, Water Quality and Health Research Group, International Water Management Institute (IWMI), P. O. Box 2075, Colombo 10120, Sri Lanka
Nguyen Duy Linh: Vietnam National University of Agriculture (VNUA), Trau Quy, Gia Lan, Hanoi, Vietnam
Ganesha Madurangi: Resource Recovery and Reuse, Water Quality and Health Research Group, International Water Management Institute (IWMI), P. O. Box 2075, Colombo 10120, Sri Lanka

Resources, 2017, vol. 6, issue 3, 1-22

Abstract: A choice experiment was used to assess households’ willingness-to-pay (WTP) for informational attributes (sources of water used to rear fish, and certification) of fish products in Hanoi, Vietnam. The study showed that households’ purchasing decisions are influenced by their access to information of food product attributes and ascribe an economic value to it. The results indicated that households are willing to pay 51% (USD 1.11 per kg) above the prevailing market price of fish for information to know if wastewater is used to rear the fish they consume. Similarly, they are willing to pay 20% above the prevailing market price of fish (USD 0.43 per kg) to know if freshwater is used as a rearing medium. It is important to note that the increased marginal WTP is for information on whether the fish they consume is raised in wastewater over freshwater. This supports the notion of households’ concern over the safety of consuming wastewater-raised fish. Households are also willing to pay 65% (USD 1.42 per kg) above the prevailing market price for certified fish. Based on the cost of fish certification and WTP estimates, we found a total economic benefit of USD 172 million for the implementation of a wastewater-raised fish business model in Hanoi. The demand for wastewater-raised fish is likely to be affected by households’ perception of certification by a trusted government agency, source of water used to raise the fish, age, income and household size.

Keywords: wastewater use; fish safety; willingness-to-pay; informational attributes; choice experiments; aquaculture (search for similar items in EconPapers)
JEL-codes: Q1 Q2 Q3 Q4 Q5 (search for similar items in EconPapers)
Date: 2017
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