Determinants of Household Income and Willingness to Pay for Indigenous Plants in North West Province, South Africa: A Two-Stage Heckman Approach

Abiodun Olusola Omotayo, Peter Tshepiso Ndhlovu, Seleke Christopher Tshwene, Kehinde Oluseyi Olagunju and Adeyemi Oladapo Aremu
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Abiodun Olusola Omotayo: Food Security and Safety Niche Area, Faculty of Natural and Agricultural Sciences, North-West University, Private Bag X2046, Mmabatho 2790, South Africa
Peter Tshepiso Ndhlovu: Indigenous Knowledge Systems (IKS) Centre, Faculty of Natural and Agricultural Sciences, North-West University, Private Bag X2046, Mmabatho 2790, South Africa
Seleke Christopher Tshwene: Department of Agricultural Economics and Extension, Faculty of Natural and Agricultural Sciences, North-West University, Private Bag X2046, Mmabatho 2790, South Africa
Kehinde Oluseyi Olagunju: Economics Research Branch, Agrifood and Biosciences Institute (AFBI), 18a Newforge Lane, Belfast BT9 5PX, UK
Adeyemi Oladapo Aremu: Food Security and Safety Niche Area, Faculty of Natural and Agricultural Sciences, North-West University, Private Bag X2046, Mmabatho 2790, South Africa

Sustainability, 2021, vol. 13, issue 10, 1-18

Abstract: Using a cross-sectional dataset, this study examines the factors influencing the income and willingness to pay for indigenous plants by rural households in the North West Province of South Africa. The method of data analysis was based on a two-stage Heckman model. Based on empirical data, the majority (93%) of the households are willing to pay for the indigenous plants. Furthermore, factors such as the age of the household’s head, marital status, size of households, financial returns and economic benefit of indigenous plants significantly influenced income and willingness to pay for indigenous plants by the households. Thus, indigenous plants have the potential to penetrate local and international markets and can be used to improve the economies, livelihood, and food security status of rural households in South Africa. Indigenous plant cultivation can increase agro-food system species diversity while conserving plant species indigenous to this area of South Africa. Encouraging both consumption and production of indigenous plants can also help diversify local economies and communities.

Keywords: consumers’ food preference; contingent valuation; purchasing power; market prospects; rural economy; sustainability (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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