We study the impact of new information about food safety on subjects' willingnessto-pay for food products, in an experimental setting. We elicit prices using either a second price auction or the Becker-DeGroot-Marschak procedure. There are three stages of bidding. In stage 1, subjects bid for products without any information. In stage 2, public information about health impact is provided. In stage 3, new certified products become available, and subjects bid then for non-certified and certified products. The introduction of certified products induces an asymmetric updating of initial bids, bids for non-certified products are lowered, but bids for certified products remain equal to the initial bids.
Recent advances in plant molecular biology offer a means of reaping the benefits of biotechnology, while potentially assuaging consumer concerns by re-inserting native DNA back into plants. Results are presented from nationwide surveys in the U.S. and France, indicating that more consumers would accept ingenic plants than transgenic plants, with twice as many U.S. than French consumers considering food produced through biotechnology eatable.
A contingent valuation study was carried out under similar conditions on two sites simultaneously: Strasbourg (France) and Kehl (Germany) in order to test the reliability of the benefit transfer method. On average, the air quality is approximately the same in the two cities. Using a transfer of the benefit function, we compared the direct estimated benefits from improved air quality with the transferred benefits in the same city. The originality of this test is that the valued good is the same in both cities, which means that the transfer is an “intra-site” transfer. However our findings show that the method of benefit transfer was not generally valid. Indeed inhabitants of Kehl declared a higher price for their state of health and air quality than inhabitants in Strasbourg. This result could be explained by a stronger sensitivity to environmental problems in Germany. Copyright Kluwer Academic Publishers 2004air pollution, benefits transfer, contingent valuation,
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