Using a Discrete Choice Experiment to Elicit Consumers’ WTP for Health Risk Reductions Achieved By Nanotechnology in the UK

We present research findings on consumers’ willingness to pay (WTP) for reductions in the level of foodborne health risks. The research addresses how such valuations are affected by the means of which the risk reduction is delivered and the methods of risk presentations used in choice tasks. In this case, the research has two treatments. In the first treatment, the comparison is between risk reductions achieved by an improvement in the food system in general (e.g., more stringent regulations and inspection regimes) within the slaughter and meat processing stages of the food chain, as opposed to a risk reduction achieved via innovations in food packaging using nanotechnology, which is the use of nanosensors in packaging. If there is a contamination in packaging, nanosensors reveal a colour change on the packaging material. In the second treatment, the comparison is between valuations of risk reductions in which reductions in risks are presented via absolute values and grids and absolute values together. Both comparisons are achieved via split sample Discrete Choice Experiment surveys. The difference between consumers’ valuations of foodborne risk reductions provides an implicit value for nanotechnology (i.e., WTP to avoid) and the effect of risk grids on choices people make. General results show the existence of heterogeneity in British consumers’ preferences. The effects of nanosensors and risk grids on consumers’ choices are not strong across the models. The valuations of health risk reductions show some variations across the models in both treatment groups.Discrete Choice Experiments, Nanotechnology, Nanosensors, Health Risks, Grids, UK, Health Economics and Policy,

Capturing Preference Heterogeneity in Stated Choice Models: A Random Parameter Logit Model of the Demand for GM Food

Analyses of data from random utility models of choice data have typically used fixed parameter representations, with consumer heterogeneity introduced by including factors such as the age, gender etc of the respondent. However, there is a class of models that assume that the underlying parameters of the estimated model (and hence preferences) are different for each individual within the sample, and that choices can be explained by identifying the parameters of the distribution from which they are drawn. Such a random parameter model is applied to stated choice data from the UK, and the results compared with standard fixed parameter models. The results provide new evidence of preferences for various aspects of the UK food system, particularly in relation to GM food but other environmental and technical aspects also. Indications of how random parameter models might be developed further are discussed on the basis of these results.random parameter logit, choice modelling, GMOs, food safety, Food Consumption/Nutrition/Food Safety,

WHO IS MOST RESPONSIBLE FOR ENSURING THE MEAT WE EAT IS SAFE?

We report results of an analysis of the attribution of relative responsibility across the stages of the food chain for ensuring food safety. Specifically, we identify perceptions of the share of the overall responsibility that each stage in the food chain has to ensure that the meat people cook and eat at home does not cause them to become ill. Results are reported for two groups of stakeholders: consumers and farmers, and for two types of meat: chicken and beef. The stakeholders’ opinions regarding the relative degrees of responsibility of the sequential food chain stages (feed supplier, farmer, livestock transportation, abattoir,… consumer) are elicited via surveys using the Maximum Difference technique (best-worst scaling). The data are analyzed using mixed logit models estimated via Bayesian techniques. We find that consumers and farmers both tend to allocate a relatively low share of responsibility to their own food safety role. So, consumers tend to think farmers are more responsible for ensuring meat safety than farmers do. Similarly, farmers tend to think consumers have a greater degree of responsibility than consumers themselves believe. Thus, there is a consistent pattern of downplaying the extent of one’s own responsibility. Further, consumers tend to allocate the highest shares of responsibility to the middle stages of the meat food chain. This contrasts with farmers who tend to allocate the highest shares of responsibility to the latter stages of the chain towards consumers, believing that the earlier stages of the chain (until the livestock arrive at the abattoir) have a relatively low share of responsibility. The analysis is currently being extended to a third group of food chain actors: abattoir workers.Maximum Difference, Best Worst Scaling, Responsibility, Food Safety, Perception, Agricultural and Food Policy, Food Consumption/Nutrition/Food Safety, Institutional and Behavioral Economics, Research Methods/ Statistical Methods, Q18, Q51, D03, D12,

Precaution and Protectionism: GM Food and the WTO

The dispute between the US and EU over GM foods at the WTO is examined in terms of the issues it raises about protectionism and environmental protection and precaution. The issue of whether GM, GM Derived and Non-GM foods are equivalent to each other is examined using data from a national choice modelling study in the UK. These categories of food are critical since they underpin the EU's new food labelling regime which it hoped would defuse the WTO dispute. The results are analysed using a Bayesian mixed logit model which allows greater flexibility in the modelling of preference distributions. This is particularly crucial where, as in this case, bi-modal distributions are identified with some indifferent or mildly averse to GM foodtypes while others are strongly averse. A strong finding of the analysis is that people treat ingredients derived from GM crops (but free from altered DNA) as equivalent to GM ingredients. This supports a labelling regime based on process rather than simply product and suggests considerable consumer benefits from the EU's new GM labelling regime.GM food, mixed logit, WTP, Bayesian, WTO, International Relations/Trade, C11, C24, C25, D12, Q18,

Precaution and Protectionism: 'Likeness' and GM Food at the WTO

The dispute between the US and EU over GM foods at the WTO is examined in terms of the issues it raises about protectionism, environmental protection and precaution. The issue of whether GM, GM Derived and Non-GM foods are equivalent to each other is examined using data from a national choice modelling study in the UK. These categories of food are critical since they underpin the EU's new food labelling regime which it hoped would defuse the WTO dispute. The results are analysed using a Bayesian mixed logit model which allows greater flexibility in the modelling of preference distributions than that allowed through classical estimation. The Bayesian approach allows the use of censored normal and Johnson's SB distributions which can accommodate a bounded distribution with a probability mass point at zero (i.e. indifference). This is particularly important where, as in the case of GM food, we may expect some to be indifferent to the food whilst others dislike it, some strongly so. The results indicate bi-modal distributions regarding GM foodtypes, with some indifferent or mildly averse to GM foodtypes and others are strongly averse. A strong finding of the analysis is that most people treat ingredients derived from GM crops (but free from altered DNA) as equivalent to GM ingredients. This supports a labelling regime based on process rather than simply product and suggests considerable consumer benefits from the EU's new GM labelling regime.GM food, mixed logit, WTP, Bayesian, WTO, International Relations/Trade, Q51, Q55, Q56, Q58,

Environmental Regulation and Industry Location

This paper estimates the effect of environmental regulation on industry location and compares it with other determinants of location such as agricultural, education and R&D country characteristics. The analysis is based on a general empirical trade model that captures the interaction between country and industry characteristics in determining industry location. The Johnson-Neyman technique is used to fully explicate the nature of the conditional interactions. The model is applied to data on 16 manufacturing industries from 13 European countries. The empirical results indicate that the pollution haven effect is present and that the relative strength of such an effect is of about the same magnitude as other determinants of industry location. A significant negative effect on industry location is observed only at relatively high levels of industry pollution intensity.Pollution Haven Hypothesis, Comparative Advantage, Industry Location

Cattle breeding in Northern Australia: Revealing how consumers react to new technologies

In Australia, Bos taurus cattle breeds produce high quality meat, superior in taste and tenderness characteristics. Nevertheless, these breeds do not thrive in the Northern Australian environment. Stem cell transplant techniques could improve northern beef cattle breeding programs by facilitating crossbreeding via natural service. Focus groups were used in this study to explore consumer reaction to reproduction technologies and the implications for buying intentions. Findings suggested that consumers may react negatively to unconventional breeding technologies but the degree of this aversion is contingent upon how the technology is described. These findings are relevant for preparation of choice modeling surveys.Non-market valuation, consumers, focus groups, new technologies, beef,

Investigating the importance of motivations and barriers related to microgeneration uptake in the UK

AbstractMicrogeneration technologies such as solar photovoltaics, solar thermal, wind and heat pumps may be able to contribute to meeting UK climate change and energy security targets, but their contribution to UK domestic energy supply remains low. This research uses a best-worst scaling survey of microgeneration adopters, considerers and rejecters (n=291) to determine the relative importance of different motivations and barriers in microgeneration (non) adoption decisions. The most important motivations are earning money from installation, increasing household energy independence and protecting against future high energy costs. Results indicate that the introduction of Feed-in Tariffs has clearly encouraged a new, more financially-motivated, group to install. Financial factors are the most important barriers and of most importance to rejecters is the prospect of losing money if they moved home. The Green Deal was introduced to reduce this barrier, but may instead exacerbate the problem as potential homebuyers are put off purchasing a home with an attached Green Deal debt. The difficulty in finding trustworthy information on microgeneration is also a major obstacle to adoption, particularly for considerers, despite efforts by the government and microgeneration interest groups to reduce this barrier. Self-sufficiency in energy is a more important motivation for those considering or having rejected installation than for adopters. Provision of accessible information and greater emphasis on household self-sufficiency in energy could help improve the uptake

ANALIZING WATER FRAMEWORK DIRECTIVE IMPACTS USING A MULTINOMIAL LOGIT LAND USE MODEL

We develop a two-stage, multinomial logit model of UK land use to investigate the impact of policy changes upon agriculture. The model utilizes a large panel database covering the entirety of England and Wales for 14 years between 1969 and 2004 integrated with the economic and physical environment determinants of all major agricultural land use types. Our model performs well in out-of-sample prediction of current land use and we use it to assess a proposed implementation of the Water Framework Directive via a tax on fertilizer. Results indicate that such policy change would generate substantial switching from arable to grassland systems, reducing significantly the amount of nitrate leaching into UK water-bodies.Water Framework Directive, Land use models, Discrete choice models, Multinomial logit, Agricultural and Food Policy, Land Economics/Use, Research Methods/ Statistical Methods, Resource /Energy Economics and Policy,