Measuring Consumers' Value of Organic-Beef using Contingent valuation method

Abstract

The dichotomous-choice contingent valuation method is applied to measure consumers' value of quality-certificated organic beef. First, a logit model is estimated like previous studies. Second is a distribution-free approach. The Turnbull empirical distribution model is employed to solve negative willingness to pay and truncation problems. The result is shown that consumers are willing to pay 7,019～10,607 won/per 600g more than the current price of regular beef for quality- certificated organic beef.

The dichotomous-choice contingent valuation method is applied to measure consumers' value of quality-certificated organic beef. First, a logit model is estimated like previous studies. Second is a distribution-free approach. The Turnbull empirical distribution model is employed to solve negative willingness to pay and truncation problems. The result is shown that consumers are willing to pay 7,019～10,607 won/per 600g more than the current price of regular beef for quality- certificated organic beef.