The Survey of Heterogeneity on Organic Products Consumers’ Preferences Using Mixed Logit and Latent Class Models

Abstract

Today, the importance of consumption of organic products has become more evident to the consumer due to the great benefits of these products. The aim of this study is to investigate the factors affecting the preferences of organic tea consumers in Tehran by considering the heterogeneity of consumer’s preferences. For this purpose, mixed logit and latent class model were used. The required information were collected through field surveys by completing a questionnaire from 405 respondents from Tehran citizens in 2016. Results from estimating mixed logit and latent class models confirm the heterogeneity of preferences between consumers. Different levels of income, education, age, history of poisoning and awareness of organic products were identified as heterogeneous factors. The results of the estimation models showed the maximum willingness-to-pay is related to the attribute of the disease and long-term effects. According to the findings of the study, it is suggested to help increase people's awareness of the characteristics of organic products and the use of targeted-oriented strategies to encourage consumers to consume organic products.     

Can environmental attributes influence protected area designation? A case study valuing preferences for springs in Grand Canyon National Park

Springs in Grand Canyon National Park (GRCA) provide water to over 6 million visitors per year. In addition to use value for visitors, springs have cultural value to indigenous peoples and provide critical habitat for plants and animals. Finally, base flow to the Colorado River is dependent upon springs and they also provide an important water source for backcountry recreation. Climate change, uranium mining, and increased groundwater pumping threaten the continued viability of Grand Canyon springs. Springs protection is at the forefront of proposed national policy to protect the area of the aquifers contributing to springs of the Grand Canyon outside of the designated boundaries of the national park. To date very little research on the non-market values of springs has been conducted, and no research has estimated non-market values of springs within Grand Canyon National Park using a Choice Experiment (CE). We conduct a nationwide online Choice Experiment to determine willingness to pay (WTP) to protect backcountry springs and attributes including; accessibility, suitability as a back country water source, suitability as habitat for species of concern, aesthetics, and significance to Indigenous Nations. We estimate a Bayesian mixed logit, and find an average willingness to pay of $32.60 per household for a spring with the presence of all five attributes. The habitat attribute produces the highest WTP of $14.80. We find WTP of $4.50 for springs with cultural significance. Results from our study could be instrumental in designation of the Grand Canyon National Heritage Monument. In addition, our results indicate that careful consideration of watershed services on public lands is essential for efficient decision-making regarding protection of public lands.     

加工农产品的附加值来自哪里——消费偏好视角的分析

从消费者偏好的视角,探究加工农产品的附加值来源,能够为中国农产品加工业发展提供关键信息。以果汁产品为例,本文采用选择实验法实证分析了消费者对产品类型、品牌地、加工地、原料产地和转基因等产品属性的偏好与支付意愿。研究结果表明,产品类型和非转基因是果汁产品附加值提升的关键,品牌和原料的原产国也有助于实现加工农产品的附加值;消费偏好具有显著的异质性特征,针对不同消费群体的产品质量设计有助于实现加工农产品的附加值。因此,政府产业政策部门和农产品加工企业可以通过调整产品类型和加贴非转基因标签,来提升中国加工农产品的附加值。同时,通过政府或行业协会实施品牌和原料的原产国公共推广政策、维护和塑造原产地正面形象,也能够有效提升附加值。     

Open access post-harvest grazing and farmers’ preferences for forage production incentives in Ethiopia

Open access post-harvest in situ grazing is widespread in areas where a mixed crop-livestock system is common. Where this is not discouraged, because livestock is important, conservation agriculture, which depends on keeping the soil surface covered with crop residues is unlikely to be implemented. One way to reduce open access grazing is through restricting communal grazing access to allow rights of exclusion, while simultaneously improving the production of livestock feeds. This paper analyzes farmers’ perceptions about post-harvest free grazing on agricultural lands and identifies incentives that motivate forage production, to help inform forage development and policy. We collected data from randomly selected farm households in the Nile Basin of Ethiopia and used a choice experiment method. We found that a majority of farmers would prefer post-harvest grazing restrictions to the existing reciprocal post-harvest grazing. Farmers also had strong preferences for forage production policy incentives, but the results reveal considerable preference heterogeneity. The study provides policy makers with needed information in formulating policy incentives for smallholder forage production systems.     

Consumers’ Preferences for Bread: Transgenic,Cisgenic, Organic or Pesticide‐free?

Consumers are apprehensive about transgenic technologies, so cisgenics, which limit gene transfers to sexually compatible organisms, have been suggested to address consumer concerns. We study consumer preferences for rye bread alternatives based on transgenic or cisgenic rye, grown conventionally or without the use of pesticides, relative to traditionally bred rye, grown with conventional or organic farming methods. Stated preference (SP) data from a choice experiment are combined with revealed preference (RP) data from market purchases from the same respondents. Results show that respondents prefer pesticide‐free production methods, and that while cisgenics is preferred over transgenics, the majority of respondents favour traditional breeding methods. The distribution in preferences suggests that some respondents prefer bread from cisgenic crops produced without pesticides over traditional crops produced using pesticides. Preferences for organic bread are stronger than for pesticide‐free products. From a policy perspective results suggest that excluding cisgenics from mandatory labeling in the EU, or including it in the voluntary non‐GM labelling in the US, would cause welfare losses for consumers.     

Capitalization of land development rights in rural China: A choice experiment on individuals’ preferences in peri-urban Shanghai

The capitalization of land development rights is acknowledged as the key to improving compensations for rural landholders and ameliorating land-related social conflicts in peri-urban China. Investigations into reasonable as well as feasible compensation standards and the capitalization mechanism are yet to be done. This study uses a survey-based choice experiment to empirically estimate the value of land development rights in peri-urban Shanghai for three forms of rural land conversion – acquisition, consolidation and (informal) sale. The results show that heterogeneity across individuals’ preferences translates into different utilities from land development, which affects individual’s willingness to participate in this process. This effect is found to be the strongest for land sales on the informal market. If, however, land conversion is managed by local governments and rural collectives, the expected utilities of individuals have no significant effect on the amount of land development. The results suggest that capitalizing land development rights under consideration of land attributes and individuals’ preferences would lift compensation standard to a level that strikes a balance among competing land-related interests. In addition, it would promote China’s land development by bypassing the institutional constraints imposed by the current land tenure system.     

Valuation of environmental and social functions of the multifunctional Cypriot agriculture

The multifunctional farming sector in Cyprus poses threats on the island’s water resources, but highly contributes to the protection of the cultural identity and to the provision of incomes and employment in its rural areas. These services are externalities, as farmers are not remunerated in markets for the environmental and cultural services they provide, nor for the fact that they maintain vivid rural areas. This paper presents an application of the Choice Experiment method, in order to evaluate these non-traded outputs of Cypriot agriculture. The results of the empirical analysis demonstrate that the Cypriot public is in favor of a less intensive pattern of agriculture. Furthermore, Cypriots are willing to pay in order to mitigate adverse environmental effects of agriculture, to improve cultural heritage and to safeguard the continuation of farming trade on the island. The estimated benefits often exceed income losses from changes in the cropping pattern towards extensification, which verifies that EU rural development policies are regarded as beneficial by the public.     

Green infrastructure planning: Unveiling meaningful spaces through Foursquare users’ preferences

The design of efficient Green Infrastructure —GI— systems is a key issue to achieve sustainable development city planning goals in the twenty-first century. This study’s main contribution is the identification of potential GI elements to better align the environmental, social and economic perspectives in the GI design by including information about the use, activities, preferences and presence of people. To achieve this, user generated content from Location Based Social Network —LBSN— Foursquare is used as a complementary data source. This involved the construction of an interdisciplinary correlation framework, between the Landscape Ecology principles and the GI elements, that included the classification of Foursquare data into grouping types. The classification considered the potential role of Foursquare venues in the GI network. Valencia City in Spain served as an illustrative case study to test the validity of the proposed method. The results suggest that Foursquare can provide a valuable insight on user perceptions of potential GI elements. Moreover, the findings indicate that user generated content from LBSNs like Foursquare can serve as a complementary tool for analysing the dynamics of urban outdoor spaces to assess GI network, thereby facilitating more effective urban planning and contributing to the social sustainability of the city.