Contingent Valuation of Organic Cucumber in Shiraz City (Application of Cheap Talk Script)

عرفانی‌فر, صمد Contingent Valuation of Organic Cucumber in Shiraz City (Application of Cheap Talk Script). In: 2nd International and 6th National Iranian Congress on Organic vs. Conventional Agriculture, August 2019, Ardabil, Iran.

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Abstract

The purpose of this research was to elicit consumers' willingness to pay for organic cucumber and to investigate its determinants in Shiraz. Due to the hypothetical market of this product, a double bounded dichotomous choice contingent valuation method was applied to the data collected by completing questionnaires from a random sample of 745 citizens in May 2019. Cheap talk script was used to reduce the hypothetical bias and to increase the validity of the results. The findings of this study showed that the effects of age and household size on the willingness to pay a premium for organic cucumber were negative and significant. Family income and educational level positively and significantly affected the willingness to pay for organic cucumbers. The level of consumers' knowledge about the benefits of organic products had a positive and significant effect on the willingness to pay for this organic product. The average willingness to pay for organic cucumber was estimated to be 14800 Rial/Kg. High income educated families who had a high level of knowledge on organic products were recognized to have the maximum willingness to pay equal to 20670 Rial/Kg that is over 40% higher than the market price for conventional cucumbers.

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