Consumers’ Valuation of Antibiotic-free Chicken Meat (Application of Heckman Two-step Procedure)

آزرم, حسن and بخشوده, محمد and عرفانی‌فر, صمد Consumers’ Valuation of Antibiotic-free Chicken Meat (Application of Heckman Two-step Procedure). In: 2nd International and 6th National Iranian Congress on Organic vs. Conventional Agriculture, August 2019, Ardabil, Iran.

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Abstract

In this study, consumers’ willingness to pay for antibiotic-free chicken meat in Shiraz was estimated by utilizing contingent valuation method with open-ended questions. Data were collected by completing the questionnaire from 576 citizens in May 2018. A two-step Heckman model was applied to identify the factors affecting the selection and estimation of the extra amount they would be willing to pay for antibiotic-free chicken compared to that for conventional one. Data analysis showed that about 91% of the people are willing to pay 19490 Rial/Kg on average as additional amount to buy antibiotic-free chicken. The probability of choosing antibiotic-free chicken by high-income households was calculated to be 6% higher than that for the low-income ones. Moreover, age and household dimension have negative and significant effects on the households’ willingness to pay for antibiotic-free chicken. Educational level and income positively and significantly affect the amount of willingness to pay for antibiotic-free chicken meat. Based on the findings of this study, it can be concluded that such product is expected to be demanded mainly by educated and high income households.

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