Consumer preferences for apple : comparing the results of contingent valuation method and a real purchasing situation

Increased competition in agro-food systems has motivated the appearance of new or more heterogeneous products. In addition consumers are increasingly more demanding about product information and characteristics, associated with a move towards products that differentiate themselves by its environmental characteristics, health effects, quality, origin, etc. Thus consumers’ preferences became more complex and diversified. Consumers are faced with a great variety of competing products and firms are ever more interested in identifying the attributes, or the combination of attributes, that are most valued by consumers. Valuation studies have sought to determine the influence of certain attributes in the willingness to pay (WTP) measures, including the importance of organically produced fruit and vegetables (Zhao et al., 2007; Radman, 2005) or the effect of providing additional information, with respect for example the health benefits, (Ginon et al. 2007; Marette et al., 2010; Bocaletti and Nardella, 2000). Considering a set of relevant characteristics, this paper investigates the influence of the attribute “National Variety” on rank order preferences and on the willingness to pay measures. The procedure assesses the effect of the origin of apple variety, comparing the values from an open ended question on the willingness to pay for two apple varieties. The elicitation of the value is performed with information on this characteristic and after tasting and rating the varieties. These results are then compared to the value elicited in a real purchasing situation, where the respondent can buy the preferred apple (one kg) if the elicited value on the open ended question is superior to an extracted random price. In sum, the paper demonstrates the applicability of the Contingent Valuation Method to eliciting the effect of information on an attribute on elicited WTP; It tests for hypothetical bias in this elicitation framework. The results show that predicted mean WTP for national varieties is lower than the predicted willingness to pay for foreign varieties. In addition, the results reveal a statistically significant hypothetical bias in the case of the National varieties, but not in the case of the foreign varieties.Fundação para a Ciência e a Tecnologia (FCT)Support from the project “Aplicação de metodologias de economia experimental na avaliação da disposição a pagar dos consumidores por variedades tradicionais de frutas e legumes” (PTDC/EGE-ECO/114091/2009) is greatly appreciated

Resilience and adaptation in the face of climate change: the Douro wine bio- cultural landscape

The Douro wine region is one of the most important Portuguese wine regions, and the oldest demarcated wine region in the world. The evolving and living cultural landscape resulted from a symbiotic relationship between human and nature, that has proven, through time, to be sustainable and resilient was, in 2001, recognized as a UNESCO world heritage site. Climate change effects represent a growing/global concern, since more frequent and extreme climate events are expected, that can go beyond the natural ecosystem?s resilience, posing additional risks to vine and wine production, that may request the implementation of urgent adaptation measures. This threat has even more importance in communities that mostly depend on the wine industry, as is the case of the Douro Valley. The evaluation of natural systems resilience to different climate change scenarios, and the how to improve this natural capital, must be a starting point for wine producers, to the local economy agents, and to society at large, before considering more structural and costly adaptation measures. The aim of the present paper is to analyse the journey of the Douro Valley, to identify local resilience factors to climate change, and to discuss how they can contribute to mitigate the consequences or effects of future climate change scenarios.Financial support from National Funds of the FCT – Portuguese Foundation for Science and Technology within the project UID/ECO/03182/2019, UIDB/04011/2020 and UID/SOC/04011/2019 is acknowledged

The Alto Douro Wine Region World Heritage Site: The complexity of a preservation program

O Alto Douro Vinhateiro (ADV) foi classifi cado pela UNESCO, em 2001, como paisagem cultural evolutiva viva. Além da diversidade física e paisagística, há uma multiplicidade de actores que intervêm no ADV possíveis de defi nir a três níveis: instrumentos e organismos públicos, ao nível da gestão do território; direitos de propriedade e responsabilidade da gestão, ao nível patrimonial; e stakeholders, quanto aos efeitos da preservação. Neste trabalho, pretende-se defi nir os atributos a considerar num programa de salvaguarda do ADV, tendo por base evidências sugeridas num estudo prévio, nos resultados de um pré-teste e em discussões públicas e reuniões com peritos. Da investigação efectuada resulta que os atributos a considerar são: (a) vinha em socalcos com muros de xisto; (b) mosaico paisagístico (diversidade de culturas vegetais), incluindo bordaduras; (c) aglomerados urbanos; (d) disposição a pagar expressa num preço..The Alto Douro Wine Region (ADW) was listed by UNESCO in 2001 as a living and evolving cultural landscape. Besides the physical diversity of the landscape, there is a multiplicity of actors involved in ADW preservation defi ned at three levels: i) instruments and public entities (in terms of land management); ii) property rights defi nition and liability management (asset level); and iii) stakeholders (as regard the preservation effects). In this paper, we defi ne the relevant attributes to formulate a program to preserve and safeguard the ADW, based on the evidence suggested in a previous study, on the results of a pretest and using information from public discussions and meetings with experts. The research carried out shows that the attributes to consider are: (a) terraced vineyards supported by schist walls, (b) landscape mosaic with agricultural diversity, including plots planted with and bordered by traditional crops, (c) traditional agglomerations and built heritage and, (d) a price, expressed by an annual tax increase per household

Alto Douro Vinhateiro património da humanidade: a complexidade de um programa de preservação

The Alto Douro Wine Region (ADW) was listed by UNESCO in 2001 as a living and evolving cultural landscape. Besides the physical diversity of the landscape, there is a multiplicity of actors involved in ADW preservation defined at three levels: i) instruments and public entities (interms of land management); ii) property rights definition and liability management (asset level); and iii) stakeholders (as regard the preservation effects). In this paper, we define the relevant attributes to formulate a program to preserve and safeguard the ADW, based on the evidence suggested in a previous study, on the results of a pretest and using information from public discussions and meetings with experts. The research carried out shows that the attributes to consider are: (a) terraced vineyards supported by schist walls, (b) landscape mosaic with agricultural diversity, including plots planted with and bordered by traditional crops, (c) traditional agglomerations and built heritage and, (d) a price, expressed by an annual tax increase per household.

The importance of the origin of apple varieties : results from a discrete choice experiment in Portugal

The increased depletion of biological diversity in agriculture can be attributed to the massification and standardization of production. Another argument is the often mentioned lower productivity of these varieties and the lack of a market price premium that compensates for these higher production cost. Policies to address this issue can either rest on market instruments or on command and control initiatives. The paper aims to determine the role that the origin of the apple variety plays in consumers’ choice, controlling for the place of production. Most literature analyzing the role of origin of production finds that national or local productions have a positive effect on consumers’ choices, receiving a positive price premium. However, appellation of origin has, to our knowledge, never been analyzed in the fruit market. Determining, in a controlled design, whether the Portuguese traditional variety has a positive price premium and characterizing the socio-economic characteristics of consumers valuing this attribute the most can provide valuable insights for apple producers and policy makers. It can help designing more effective strategies to increase market shares or identifying market niches for producers and to promote agro-biodiversity more effective by policy makers. Our results indicate that consumers are willing to pay a statistically significant price premium for the national varieties. In addition, consumers that value the national variety, on average, buy larger quantities and buy more frequently, buy specific varieties, are more aware of products characteristics and are on average older. These results are encouraging for policy makers as they demonstrate the potential for policies based on market instruments as consumers are responsive to price. In addition, the analysis of consumers’ heterogeneity typifies the segments that are more willing to buy national varieties. Finally, the results also indicate, to apple producers and marketers, possible ways to increase their market shares by identifying the socio-demographic characteristics of consumers more willing to buy national varieties at higher prices that may compensate for the increased costs of production.Fundação para a Ciência e a Tecnologi

Annoyance and welfare costs from the presence of renewable energy power plants: an application of the contingent valuation method

Sustainability is frequently defined by its three pillars: economically viable, socially equitable, and environmentally bearable. Consequently the evaluation of the sustainability of any decision, public or private, requires information on these three dimensions. This paper focuses on social sustainability. In the context of renewable energy sources, the examination of social sustainability requires the analysis of not only the efficiency but also the equity of its welfare impacts. The present paper proposes and applies a methodology to generate the information necessary to do a proper welfare analysis of the social sustainability of renewable energy production facilities. This information is key both for an equity and an efficiency analysis. The analysis focuses on the case of investments in renewable energy electricity production facilities, where the impacts on local residents’ welfare are often significantly different than the welfare effects on the general population. We apply the contingent valuation method to selected facilities across the different renewable energy power plants located in Portugal and conclude that local residents acknowledge differently the damage sustained by the type, location and operation of the plants. The results from these case studies attest to the need of acknowledging and quantifying the negative impacts on local communities when assessing the economic viability, social equity and environmental impact of renewable energy projects

Accounting for local impacts of photovoltaic farms: two stated preferences approaches

Renewable energy sources for electricity generation are unequivocally more environmentally friendly than the traditional sources, but are not impact-free. Given the potential for solar photovoltaic energy to contribute to the energy mix in some countries, it is timely to carefully consider the potential environmental costs of operation of photovoltaic farms, which are experienced by the local population, while the general benefits accrue to all. These adverse impacts should be identified and acknowledged. This paper proposes and applies economic valuation methods to estimate the value of those environmental impacts. We apply the contingent valuation method to a sample of local residents close to three selected photovoltaic farms in Portugal. We design a discrete choice experiment to elicit the valuation of specific adverse impacts of electricity generation through photovoltaic energy by national residents. Our results show that the value elicited in the vicinity of the photovoltaic farms is non-negligible and national residents value positively and differently the different adverse local impacts. Both of these estimates, in conjunction or independently, can be used to fully account for this often neglected cost of solar energy. The asymmetric equity implications of photovoltaic projects should not be neglected when deciding their construction and location.PTDC/EGEECO/122402/201

Wine Firm’s Size and Economic Performance: Evidence from Traditional Portuguese Wine Regions

The wine market is an excellent example of monopolistic competition, demonstrating both vertical and horizontal product differentiation. The propensity toward monopolistic competition and the asymmetric preferences of wine consumption can justify the coexistence of different sized wineries. The main goal of this chapter is to analyze the economic performance of wineries, using indicators widely employed in economic and business literature, and to assess the potential influence of size on firm’s performance. To achieve this goal, different statistical tests are applied to firms´ data collected from two representative Portuguese demarcated wine regions (Douro and Vinho Verde). The results confirm that the wine firm’s performance is a multidimensional construct, exhibiting similarities and differences, according to the index used. The size of firms increases their export performance but exhibits a nonstatistical effect on the financial performance. The indices of productivity and productive efficiency show that there is no standard behavior. The results of this study can be useful both for managers and public decision-makers, given the importance of controlling economic performance in order to guarantee the industry’s competitiveness in an increasingly globalized wine business

Consumers’ valuation of national versus foreign varieties of tomatoes : results of a contingent valuation study in Portugal

The identification and characterization of consumers’ preferences for agricultural products may constitute a valuable tool for producers in identifying market niches for their current production and to plan activity choice for the future. Traditional varieties of fruits and vegetables have been subject to some scrutiny in this respect. However, but for a few studies, consumers’ preferences for tomatoes have rarely been studied. Using the contingent valuation methodology applied to a panel of six different varieties of tomatoes (three national varieties, and three foreign varieties), the present paper provides evidence concerning the most relevant determinants of consumers’ willingness to pay, controlling for place and mode of production of the tomatoes’ varieties. In addition, the study elicits consumers’ rating of these varieties with respect to appearance, taste, smell and texture. Based on our multivariate results, the estimated market price premium for national varieties of tomatoes is 35% relatively to foreign varieties.Support from the project PTDC/EGE-ECO/114091/2009), Fundação para a Ciência e a Tecnologi

Origin or organoleptic characteristics of Pears : which is more valued in the market?

Consumers’ decision when buying fruit and vegetables is determined by tangible and intangible attributes. In general, intangible attributes, such as the origin of the variety, are not perceived by consumers before or after purchase; thus, information on these characteristics of products must be provided. The origin of the variety is a particularly important intangible attribute in the case of fruit and vegetables. Its relevance is due to the role that traditional varieties may play in the conservation of biodiversity, and also in the local economy. In many instances, however, the higher production costs and lower profitability associated with traditional varieties discourage the continuation of this activity. Arguably, the farmers shall then be compensated by the market (through a price premium) to ensure the maintenance of local traditional varieties. The purpose of the present study is to enhance information about the relative importance of several attributes or characteristics of the product Pears, and to assess consumers’ willingness to pay for the specific attribute Origin of Variety, detecting and quantifying the potential existence of a price premium.Support from the project PTDC/EGE-ECO/114091/2009 Fundação para a Ciência e a Tecnologi