Meroz, Yael and Morone, Andrea and Morone, Piergiuseppe (2009): Eliciting environmental preferences of Ghanaians in the laboratory: An incentive-compatible experiment.
Download (146kB) | Preview
In this paper we aim to look into the attributes of Ghanaians’ willingness-to-pay for green products. This would help us to assess whether Ghanaians show a preference towards environmental goods. The methodology employed to address these issues is an ‘experimentally-adapted’ CV survey which involves laboratory experiment conducted among Ghanaian University students. Notwithstanding the limitations arising from the sample used in our experiment (most notably University students do not represent, economically wise, the entire Ghanaian population), we believe that our investigation provides a first answer to such question as Ghanaians consistently show that they are willing to pay an extra premium for green products.
|Item Type:||MPRA Paper|
|Original Title:||Eliciting environmental preferences of Ghanaians in the laboratory: An incentive-compatible experiment|
|Keywords:||contingent valuation, experiment, incentive-compatible, Ghana, organic products, willingness to pay|
|Subjects:||O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O10 - General
Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q5 - Environmental Economics > Q56 - Environment and Development ; Environment and Trade ; Sustainability ; Environmental Accounts and Accounting ; Environmental Equity ; Population Growth
C - Mathematical and Quantitative Methods > C9 - Design of Experiments > C91 - Laboratory, Individual Behavior
|Depositing User:||Andrea Morone|
|Date Deposited:||05. Sep 2009 07:33|
|Last Modified:||14. Feb 2013 06:10|
Al-Hassan, R. and Jatoe, J.B. 2005. Consumer Willingness to Pay for Pesticide-Free and Germ-Free Fresh Vegetables: Perception versus Reality in Accra. Mimeo. University of Ghana in Legon.
Ara, S. 2003. “Consumer Willingness to Pay for Multiple Attributes of Organic Rice: A Case Study in the Philippines”. Paper presented at the 25th International Conference of Agricultural Economists, August 16-22, Durban, South Africa.
Becker G., DeGroot, M. and J. Marschak, 1964. “Measuring Utility by a Single Response Sequential Method”, Behavioral Science 9, pp. 226-232.
Boccaletti, S., and Nardella, M. 2000. “Consumer willingness to pay for pesticide-free fresh fruit and vegetables in Italy”, International Food and Agribusiness Management Review 3, pp. 297-310.
Brechin, S.R. and Kempton, W. 1994. “Global Environmentalism: A Challenge to the Post Materialist Thesis?” Social Science Quarterly, 75:2, pp. 245-269.
Bullock, D. S., and Rutström, E. E., 2007. “Policy making and rent-dissipation: An experimental test”, Experimental Economics, Volume 10, Number 1.
Carson R., Wright, J.L., Carson, N.J., Alberini, A. and N.E. Flores, 1995. A Bibliography of Contingent Valuation Studies and Papers. San Diego: Natural Resources Damages Assessment Inc.
Cranfield, J. and Magnusson, E. 2003. “Canadian Consumer’s Willingness-To-Pay for Pesticide Free Food Products: An Ordered Probit Analysist”, International Food and Agribusiness Management Review 6:4, pp. 13-30.
Danso, G., Drechsel, P. and S. Pialor, 2002. “Perceptions of organic agriculture by urban vegetable farmers and consumers in Ghana”, Urban Agriculture Magazine 6, pp. 23-24.
Dasgupta, S., Laplante, B., Wang, H., and D. Wheeler, 2002. “Confronting the Environmental Kuznets Curve”, Journal of Economic Perspectives 16:1, pp. 147-168.
Diamond, P.A. and Hausman, J.A. 1994. “Contingent Valuation: Is Some Number Better than No Number?” Journal of Economic Perspectives 8:4, pp. 45-64.
Diamond, P.A., Hausman, J.A., Leonard, G.K. and M.A. Denning, 1993. “Does Contingent Valuation Measure Preferences? Experimental Evidence”, pp. 41-62 in Hausman, J. (Ed.), Contingent Valuation: A Critical Assessment. Amsterdam, Elsevier Science Publishers.
Gil, J.M., Gracia, A. and M. Sanchez, 2000. “Market Segmentation and Willingness to Pay for Organic Products in Spain”, International Food and Agribusiness Management Review 3, pp. 207-226.
Hey, J.D. and Orme, C. 1994. “Investigating Generalizations of Expected Utility Theory Using Experimental Data”, Econometrica 62:6, pp. 1291-1326.
Hey, J. D. and Morone, A. 2004. “Do Markets Drive Out Lemmings-or Vice Versa?”, Economica, vol. 71(284), pages 637-659.
Hey, J.D., Morone, A. and U. Schmidt, 2007. “Noise and Bias in Eliciting Preferences”, Discussion Papers in Economics 2007/04, University of York.
Hirschman, A. O. 1970. “Exit, Voice and Loyalty”, Harvard University Press.
Kinnear, T.C. and Taylor, R.J. 1973. “The Effect of Ecological Concern on Brand Perceptions”, Journal of Marketing Research 10, pp. 191-197.
Levitt, S.D. and List, J.A. 2007. “What Do Laboratory Experiments Measuring Social Preferences Reveal About the Real World?”, Journal of Economic Perspectives 21:2, pp. 153-174.
Martin, B. and Simintiras, A.C. 1995. “The Impact of Green Product Lines on the Environment: Does what They Know Affect How They Feel?”, Marketing Intelligence and Planning 13, pp. 16-23.
Martinez-Alier, J. 1995. “The Environment as a Luxury Good or ‘Too Poor to be Green’”. Ecological Economics 13, pp. 1-10.
Morone, A. and Schmidt, U. 2003. An Experimental Investigation of Alternatives to Expected Utility Using Pricing Data, University of Hannover Discussion Paper No 28.
Ozanne, L.K. and Vlosky, R.P. 2003. “Certification from the US Consumer Perspective: A Comparison of 1995 and 2000”, Forest Products Journal 53:3, pp. 13-21.
Panayotou, T. 1993. “Empirical Tests and Policy Analysis of Environmental Degradation at different Stages of Economic Development”, Working Paper WP238, Technology and Employment Programme, ILO, Geneva.
Pearce, D.W. and Turner, K.R. 1990. Economics of Natural Resources and the Environment, Baltimore: Johns Hopkins University Press.
Prothero, A. and McDonagh, P. 1993. “The European Community and Environmentalism: The Impact of EC Environmental Policies upon the Marketing Function” pp. 985-1004 in Baker, M.J. (Ed.) Perspectives on Marketing Management Vol. 3. Chichester: Wiley.
Samuelson, L. 2005. “Economic Theory and Experimental Economics”, Journal of Economic Literature, 43:1, pp. 65-107.
Scialabba, N. 2000. “Factors Influencing Organic Agriculture Policies with a Focus on Developing Countries”, IFOAM 2000 Scientific Conference, Basel, Switzerland, 28-31 August. Available on-line at: www.fao.org/organicag/doc/BaselSum-final.doc. Accessed on: 01.09.2006.
Siaw, G.K., 2003. “Fair Trade Bananas: Contributing to Sustainable Rural Livelihoods in Ghana”. World Trade Organization Public Symposium: Challenges Ahead on the Road to Cancun, Geneva, June 16-18.
Smith, Vernon L. (1976). "Experimental Economics: Induced Value Theory". American Economic Review 66 (2): 274–279
Thurow, L. 1980. The Zero-Sum Society: Distribution and the Possibilities for Change. New York: Basic Books.
Turocy, T., Watson, E., and Battalio, R. C., 2007. “Framing the First-Price Auction”, Experimental Economics 10(1): 37-52, 2007.
VREL (Volta River Estates Limited). Banana Production. Available online at: http://www.voltariver.com/.
WEFA (Wharton Econometric Forecasting Associates), 2001. Ghana Country Monitor. March.
Whittington, D. 2002. “Improving the Performance of Contingent Valuation Studies in Developing Countries”, Environmental and Resource Economics 22, pp. 323-367.
Willer, H. & Yussefi, M. (Eds.), 2004. The World of Organic Agriculture: Statistics and Emerging Trends, 2004. Bonn: International Federation of Organic Agriculture Movements.
Wolf, M. 2004. Why Globalisation Works? The Case for Global Market Economy. New Haven: Yale University Press.