nep-dcm New Economics Papers
on Discrete Choice Models
Issue of 2018‒11‒12
three papers chosen by
Edoardo Marcucci
Università degli studi Roma Tre

  1. Valuation of access to irrigation water in rural Ethiopia: application of choice experiment and contingent valuation methods By Gebreegziabher, Z.; Mekonnen, A.; Beyene, A.D.; Hagos, F.
  2. Are Food Neophobic Consumers Reluctant to Innovative Traditional Pork Products? An Analysis in Six European countries using A Non-Hypothetical Choice Experiment By Kallas, Z.; Vitale, M.; Candek-Potokar, M.; Lebret, B.; Pugliese, C.; Cerjak, M.; Oliver, M.A.; Tomazin, U.; Aquilani, C.; Gil, J.M.
  3. Are Urban Consumers in Niger Willing to Pay for Safe and Nutritious Food? By Nakelse, T.; Dalton, T.

  1. By: Gebreegziabher, Z.; Mekonnen, A.; Beyene, A.D.; Hagos, F.
    Abstract: Water scarcity for various uses constitutes a major global concern affecting millions of people but the problem is more serious especially in Africa. In a situation where farmers do not pay for irrigation water use, this study aims to investigate demand-side issues by eliciting farmers willingness to pay (WTP) for access to irrigation water. We employ choice experiment and contingent valuation methods to valuing access to irrigation water taking Ethiopia as a case in point. Unlike previous studies, the study covers users and non-users of irrigation water using the same baseline (status quo) conditions and compares the preferences of these two groups. Four attributes identified in the choice experiment are number of crop seasons, frequency of watering in a season, crop type and payment. Results show that marginal WTP was Birr 17.7, 261.8 and 87.6 for number of crop seasons, watering frequency in a season and crop type respectively. Our estimate of WTP of farmers for operation and maintenance of irrigation schemes per hectare of irrigated land range from Birr 738 (from the CE) to Birr 784 (from the CVM). We find non-users are willing to pay more in general as well as for the number of crop seasons specifically. Acknowledgement : The authors gratefully acknowledge with thanks financial support for this work from Swedish International Development Cooperation Agency (Sida) through the Environment for Development (EfD) initiative, Department of Economics, University of Gothenburg, Sweden; and logistical support during the field work from the Ministry of Water, Irrigation and Electricity of Ethiopia. The authors also thank Dale Whittington and participants of the 11th EfD Annual Meeting 2017, Addis Ababa, Ethiopia for useful comments on an earlier version of the paper.
    Keywords: Resource/Energy Economics and Policy
    Date: 2018–07
  2. By: Kallas, Z.; Vitale, M.; Candek-Potokar, M.; Lebret, B.; Pugliese, C.; Cerjak, M.; Oliver, M.A.; Tomazin, U.; Aquilani, C.; Gil, J.M.
    Abstract: The EU is supporting measures to stimulate enhanced value-added products in order to promote actions that may conserve local, rustic and threatened livestock breeds. New Traditional Pork Products (TPP) and Innovative Traditional Pork Products (ITPP) from six untapped pig breeds in Croatia (Turopolje), France (Gascon), Italy (CintaSenese), Slovenia (Kr kopolje) and Spain (Porc Negre Mallorqu ) were analysed. Consumers real purchase intention and acceptance were investigated with a specific attention on how consumers Food Neophobic attitude (FNS) may impact their preferences. An integrated experimental approach was applied using two Non-Hypothetical Discrete Choice Experiment (DCE) carried out before and after a sensory test. A mother Logit models with Random Parameters specification were estimated and the willingness to pay were derived. Preliminary results showed that food neophobic consumers are reluctant to purchase the TPP and the ITPP and exhibited lower expected and actual liking scores. When consumers are not familiar with the innovations type (meat with added dietary fiber and with natural antioxidant), the eating experience confirms expectations. However, when innovations are known, the eating experience affected preferences. In this case, marketing strategies that give consumers the occasion to taste the new products may help introducing them to new market. Acknowledgement : This study has received funding from the European Union s Horizon 2020 research and innovation programme under grant agreement No 634476 (project acronym TREASURE). The content of this paper reflects only the author s view and the European Union Agency is not responsible for any use that may be made of the information it contains.
    Keywords: Consumer/Household Economics
    Date: 2018–07
  3. By: Nakelse, T.; Dalton, T.
    Abstract: Nondiversified and poor-quality diets are some of the main causes of hidden hunger and associated illnesses. Yet there is limited research on consumer valuation of food quality attributes especially those related to nutritional quality in low-income countries. Consequently, we assess urban consumers preference for food quality attributes of value-added cereal products in Niamey, Niger. We combine qualitative and quantitative methods to assess 205 randomly sampled consumers preferences and the willingness-to-pay (WTP) for food quality attributes. Multinomial logit models are estimated using Maximum Simulated Likelihood and comparing two alterative specifications of consumer preferences. In addition, we account for taste and preference heterogeneity inherent to consumers responses to a change in quality attributes. We find that consumers are highly sensitive to the nutritional quality attribute as measured by the expiration date, the presence of micronutrients, and the product origin. These results suggest a market demand for quality food products beyond traditional cereals but demand is heterogenous and class-dependent. Food processors and policymakers should better communicate quality attributes of products through a sound promotion strategy marked by quality labeling. Keywords: Food Labeling, Consumer Surplus, Choice Experiment, Niger, Nutrition, WTP THIS PAPER SHOULD BE ENTERED INTO THE T.W. SCHULTZ YOUNG ECONOMIST COMPETITION. Acknowledgement : This study was made possible by the support of the Feed the Future Innovation Lab for Collaborative Research on Sorghum and Millet through the United States Agency for International Development (USAID). The contents are the sole responsibility of the authors and do not necessarily reflect the views of USAID or the United States Government. Program activities are funded by the United States Agency for International Development (USAID) under Cooperative Agreement No. AID-OAA-A-13-00047.
    Keywords: Consumer/Household Economics
    Date: 2018–07

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