Willingness to Pay for Pesticide Free Fruits: Evidence from Pakistan |
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| Authors: | Jahangir Khan Kar Ho Lim Abbas Ullah Jan Syed A Shah |
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| Institution: | 1. Department of Agricultural &2. Applied Economics, The University of Agriculture, Khyber Pakhtunkhwa, Peshawar, Pakistan;3. Environmental Sciences, College of Agriculture, Tennessee State University, Nashville, TN, USA |
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| Abstract: | ABSTRACTThis paper analyzes factors influencing consumption decision of pesticide free fruits (PFF) and estimates the willingness to pay (WTP) price premium for PFF in Pakistan. A contingent valuation survey of 200 households was conducted using face to face interview and payment card method. Results suggested that 93.5% respondents were WTP higher prices for PFF. Remarkably, around 35% respondents were WTP 16–20% higher prices and 24% respondents were WTP 6–10% higher prices for PFF than the existed conventional price. In addition, our ordered logit regression suggests that demographic and socio-economic variables such as age, education, income, household’s size and perception about health benefits are significantly associated with higher WTP for PFF. |
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| Keywords: | Consumer ordered logit Pakistan PFF price premium WTP |
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