Joint Estimation of Consumer Preferences and Willingness-To-Pay for Food Safety
摘要
A joint probit and ordered probit model is formulated to simultaneously analyze consumer preferences and willingness–to–pay for certified residue–free (CRF) produce. Results suggest that those consumers wanting to ban chemical pesticides or impose greater restrictions and those who consider testing and certification important have a greater tendency of willingness to pay a premium for CRF produce. Household income and marital status are the most important socioeconomic characteristics that affect the amount of premium consumers are willing to pay for CRF produce. Furthermore, the results show that crossequation correlation is positive and significant. Estimates of the separate equations may be biased and inconsistent, if the interdependency of error terms is neglected.