Consumers’ willingness to pay for antibiotic-free chicken meat: application of contingent valuation method

Ebad Allah Jahanabadi (), Seyed Nematolla Mousavi (), Mohammad Hashem Moosavihaghighi () and Mohammad Reza Eslami ()
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Ebad Allah Jahanabadi: Marvdasht Branch, Islamic Azad University
Seyed Nematolla Mousavi: Marvdasht Branch, Islamic Azad University
Mohammad Hashem Moosavihaghighi: Faculty of Fars Research Centre for Agriculture
Mohammad Reza Eslami: Yazd Branch, Islamic Azad University

Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, 2024, vol. 26, issue 10, No 25, 25172 pages

Abstract: Abstract This research used open-ended, single-bonded, and double-bounded dichotomous choice questions to determine consumer willingness to pay for chicken free of antibiotics in Yazd. 525 questionnaires were filled out as part of an in-store survey in June 2018 to gather the necessary data. This study’s highlights include validating the fundamental hypotheses of the Tobit model for open-ended questions as well as using the best bid vector and a cheap talk script to lessen the bias in the contingent valuation method’s findings for dichotomous questions. The findings demonstrated that, based on the open-ended question, the projected and actual proportion of people who would be prepared to pay extra for the characteristic of being antibiotic-free is more than 21%. Besides, the average willingness to surplus payment per kilogram of antibiotic-free chicken meat compared to conventional chicken meat for double-bounded, and single-bonded methods is 20% and 18%, respectively. According to the findings of several models’ estimates, socioeconomic factors including household size, income, and socioeconomic characteristics like the age and education of the head of the household all significantly influenced consumers’ willingness to pay for chicken meat free of antibiotics. The willingness to purchase chicken meat devoid of antibiotics reveals that people are concerned about the security and welfare of the chicken meat. This could be an opportunity to develop manufacturing and processing industries to provide products with desired characteristics.

Keywords: Willingness to pay; Contingent valuation method; Antibiotic-free chicken meat; Double-bounded dichotomous choice (search for similar items in EconPapers)
Date: 2024
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DOI: 10.1007/s10668-023-03674-3

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