Bovine spongiform encephalopathy in Japan: consumers' food safety perceptions and willingness to pay for tested beef*

The discovery of bovine spongiform encephalopathy (BSE), commonly known as ‘mad cow disease’, in Japan caused anxiety about consuming beef and beef products. As a result, there was a sudden fall in sales of beef that hurt the Japanese beef industry as well as major beef exporters to Japan. We analyse factors that affect Japanese consumers' willingness to pay (WTP) price premiums for BSE‐tested beef and estimate the mean WTP for BSE‐tested beef using data obtained from a consumer survey in Japan. A single‐bounded dichotomous choice contingent valuation model is used to recover the premium amount. We find that attitudes to food safety, reduction in beef consumption following the BSE outbreak, and being female all have a statistically significant positive effect on the WTP for BSE‐tested beef. Interestingly, demographic variables such as age and income do not affect the WTP, possibly indicating that the BSE scare similarly affected multiple segments of the population. In our sample, consumers are willing to pay a premium on average of greater than 50 per cent for BSE‐tested beef.     

Consumer Attitudes to Genetically Modified Food in Norway

There is a lack of public acceptance of genetically modified (GM) food products in Europe. Using a dichotomous choice contingent valuation methodology, we find that, on average, survey respondents with a positive attitude toward the use of biotechnology in food production, higher educated, younger, and male need less of a discount to choose to purchase bread made with GM wheat. Further, we estimate confidence intervals for the mean discount required for consumers to choose GM bread. The 95% confidence interval for the mean discount required for the respondents to choose the GM bread is a 37% to 63% discount relative to conventional bread.     

Policies and Attitudes toward Genetically Modified foods in Norway

Policies and Attitudes toward Genetically Modified Foods in Norway Norwegian food and agricultural policies have up to now prevented the introduction and commercialization of GM foods. This may be considered just an imitation of EU neighbours. On the other hand, based on results from our study, the application of the precautionary principle to GM foods is well justified in Norway since consumers currently do not feel comfortable with these products. Our analysis is based on data from a survey of 400 food shoppers in the Oslo‐region of Norway conducted in January 2002. Of consumers surveyed, eighty‐six per cent of consumers thought labeling of GM foods was very important. Consumers in the sample were on average only willing to purchase GM bread with an approximately 50 per cent discount compared to non‐GM bread, indicating that there is strong scepticism toward GM foods in Norway. When comparing the consumers who were the most willing to purchase GM bread with the consumers who were the least willing to purchase GM bread, we found that the latter group was significantly older, had more women, higher incomes and lower formal education. The strict Norwegian GM food policies are consistent with the consumer consensus against the inclusion of GM foods in the Norwegian market. Les aliments génétiquement modifiés en Norvège:politiques mises en oeuvre et attitudes des consommateurs Jusqu'ici, les politiques agrtcoles et alimentaires en Norvège ont toujours prohibé l' importation et la commercialisation d'aliments génétiquement modifyés. On pourrait l' interpréter comme une simple imitation de ce qui se passe dans l' UE voisine. Pourtant, les résultats présentés ici montrent que l'application du principe de précaution aux aliments génétiquement modifyés est justifyée en Norvège par le fait que les consommateurs ne se sentent pas confortables avec ces produits. Ceci ressort d'une enquête effectuée en Janvier 2002 auprès de 400 acheteurs de produits alimentaires dans la règion d'Oslo. 86% des répondants estiment que l'étiquetage des produits génétiquement modifyés est ‘très important’. En moyenne, les consommateurs de l'échantillon exigent un baisse de 50% du prix du ‘pain OGM’ par rapport au pain ‘non OGM’ pour accepter d'acheter le premier. Cela témoigne d'un fort scepticisme vis‐à‐vis des OGM en Norvège. Quand on oppose le groupe des consommateurs les ‘plus favorables’ aux OGM au groupe des ‘moins favorables’ on trouve que le second est composé de gens plus vieux, qu'il est plus féminin, bénéficie de revenus plus élevés et d'un niveau d'éducation plus faible. La politique anti‐OGM suivie en Norvége est done en accord avec l'opinion publique, qui rejette l'idée d'introduire ces produits sur les marchés norvégiens. Politikmaßnahmen und Einstellungen zu genetisch veränderten Le bensmitteln in Norwegen Die norwegische Agrar‐ und Ernährungspolitik hat bislang die Einführung und Vermarktung von genetisch veränderten Lebensmittein erfolgreich verhindert. Dies könnte lediglich als Nachahmung der EU‐Nachbarn aufgefasst werden. Unseren Forschungsergebnissen zu Folge wird das Sicherheitsprinzip auf genetisch veränderte Lebensmittel in Norwegen jedoch aus gutem Grund angewendet, da die Verbraucher diesen Produkten zur Zeit nicht genug Vertrauen entgegen bringen. Unsere Analyse gründet sich auf Umfragedaten von 400 Lebensmittelkäufern aus der Region um Oslo/Norwegen imjanuar2002. 86 Prozent der Befragten hielten es fur sehr wichtig, genetisch veranderte Lebensmittel zu kennzeichnen. Die Verbraucher in dieser Stichprobe waren im Durchschnitt nur dann bereit, genetisch verändertes Brot zu kaufen, wenn es im Vergleich zu genetisch nicht verandertem Brot einen Preisnachlass von zirka 50 Prozent gäbe. Darin zeigt sich eine starke Skepsis der Norweger gegenüber genetisch veränderten Lebensmittein. Beim Vergleich der Verbraucher, weiche die starkste Bereitschaft zeigten, genetisch verändertes Brot zu kaufen, mit den Verbrauchern, weiche die schwächste Bereitschaft zeigten, genetisch verändertes Brot zu kaufen, ergab sich, dass die zweite Gruppe ein signifikant höheres Alter, einen höheren Frauenanteil, höhere Einkommen und eine geringere Schulbildung aufwies. Die strikten norwegischen Politikmaßnahmen im Hinblick auf genetisch veränderte Lebensmittel entsprechen dem Wunsch der Verbraucher, genetisch veränderte Lebensmittel auf dem norwegischen Markt nicht zuzulassen.     

Relating environmental attitudes and contingent values: how robust are methods for identifying preference heterogeneity?

We assess the importance and robustness of cluster analysis and latent class analysis as methods to account for unobserved heterogeneity. We provide a critique and comparison of both methods in the context of measuring environmental attitudes and a contingent valuation study involving endangered species. We find strong evidence of robustness for these methods: group characterization and assignment of individuals to groups are similar between methods, and willingness-to-pay estimates are consistent. In addition, there are significant differences in willingness-to-pay across environmental attitudinal groups, and we find that accounting for unobservable heterogeneity provides a significantly better fitting model.     

Ponderous,Proficient or Professional? Survey Experience and Smartphone Effects in Stated Preference Research

Environmental and Resource Economics - Stated preference surveys are increasingly conducted online using internet panel samples, where a fast-growing share of respondents answer on smartphones....