Consumer’s Willingness to Pay for Organic Rice Product

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Paopan Yangkunchao
Udomsak Seenprachawong

Abstract

This study aims to evaluate the health and environmental benefits of organic rice products using the environmental economics valuation technique. By introducing the contingent valuation method and the utility difference model to elicit willingness to pay of organic rice consumers and to investigate the socio-economic determinants of the willingness to pay from 620 samples. The study was divided into two categories in accordance with the characteristics of the products which are health benefit and environmental benefit. The results show that Bangkok and Metropolis consumers are willing to pay more for organic rice products with features that are beneficial to health, can call the value are private or individual benefits than environmental, which can interpret the value are the Payment for Ecosystem Services. In addition, the socio-economic factors: status of works, initial bid (price), average household income per head show statistical significance on consumer’s willingness to pay.

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References

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