Hostname: page-component-cd9895bd7-mkpzs Total loading time: 0 Render date: 2024-12-23T09:21:39.607Z Has data issue: false hasContentIssue false
  • English
  • Français

The Welfare Effects of Pfiesteria-Related Fish Kills: A Contingent Behavior Analysis of Seafood Consumers

Published online by Cambridge University Press:  15 September 2016

George R. Parsons ,
Ash Morgan ,
John C. Whitehead  and
Timothy C. Haab
George R. Parsons
Affiliation:
College of Marine Studies and Department of Economics at the University of Delaware in Newark, Delaware
Ash Morgan
Affiliation:
Department of Marketing and Economics at the University of West Florida in Pensacola, Florida
John C. Whitehead
Affiliation:
Department of Economics at Appalachian State University in Boone, North Carolina
Timothy C. Haab
Affiliation:
Department of Agricultural, Environmental, and Development Economics at Ohio State University in Columbus, Ohio
Get access Rights & Permissions [Opens in a new window]

Abstract

We use contingent behavior analysis to study the effects of pfiesteria-related fish kills on the demand for seafood in the Mid-Atlantic region. We estimate a set of demand difference models based on individual responses to questions about seafood consumption in the presence of fish kills and with different amounts of information provided about health risks. We use a random-effects Tobit model to control for correlation across each observation and to account for censoring. We find that (i) pfiesteria-related fish kills have a significant negative effect on the demand for seafood even though the fish kills pose no known threat to consumers through seafood consumption, (ii) seafood consumers are not responsive to expert risk information designed to reassure them that seafood is safe in the presence of a fish kill, and (iii) a mandatory seafood inspection program largely eliminates the welfare loss incurred due to misinformation.

Keywords

pfiesteriaseafood demandnon-market valuation
Type
Contributed Papers
Information
Agricultural and Resource Economics Review , Volume 35 , Issue 2 , October 2006 , pp. 348 - 356
Copyright
Copyright © 2006 Northeastern Agricultural and Resource Economics Association 

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Ahluwalia, R., Burnkrant, R. E., and Unnava, H. R. 2000. “Consumer Response to Negative Publicity: The Moderating Role of Commitment.” Journal of Marketing Research 37(2): 203–214.Google Scholar
Anderson, J. G., and Anderson, J.L. 1991. “Seafood Quality: Issues for Consumer Researchers.” The Journal of Consumer Affairs 25(1): 144–163.Google Scholar
Brown, D. J., and Schrader, L. F. 1990. “Cholesterol Information and Shell Egg Consumption.” American Journal of Agricultural Economics 72(3): 548–555.Google Scholar
Consul, P. C. 1989. “On the Differences of Two Generalized Negative Binomial Variates.” Communications in Statistics: Theory and Methods 18(2): 673–690.Google Scholar
Frewer, L. J., Scholdere, J., and Bredahl, L. 2003. “Communicating about the Risks and Benefits of Genetically Modified Foods: The Mediating Role of Trust.” Risk Analysis 23(6): 1117–1133.CrossRefGoogle ScholarPubMed
Hanemann, W. M. 1994. “Valuing the Environment Through Contingent Valuation.” The Journal of Economic Perspectives 8(4): 19–43.Google Scholar
Hovland, C.I., and Weiss, W. 1951. “The Influence of Source Credibility on Communication Effectiveness.” Public Opinion Quarterly 15(4): 635–650.Google Scholar
Kleindinst, J., and Anderson, D. 2001. “Pfiesteria-Related Educational Products and Information Resources Available to the Public, Health Officials, and Researchers.” Environmental Health Perspectives 109(5): 695–698.Google Scholar
Kroloff, G. 1988. “At Home and Abroad: Weighing In.” Public Relations Journal 44(October): 8–10.Google Scholar
Sherrell, D., Reidenbach, R. E., Moore, E., Wagle, J., and Spratlin, T. 1985. “Exploring Consumer Response to Negative Publicity.” Public Relations Review 11(1): 13–28.CrossRefGoogle Scholar
Shulstad, R. N., and Stoevener, H. H. 1978. “The Effects of Mercury Contamination in Pheasants on the Value of Pheasant Hunting in Oregon.” Land Economics 54(1): 39–49.Google Scholar
Smith, M. E., van Ravenswaay, E.I., and Thompson, S. R. 1988. “Sales Loss Determination in Food Contamination Incidents: An Application to Milk Bans in Hawaii.” American Journal of Agricultural Economics 70(3): 513–520.Google Scholar
Smith, A. P., Young, J.A., and Gibson, J. 1999. “Hey Now, Mad Cow? Consumer Confidence and Source Credibility During the 1996 BSE Scare.” European Journal of Marketing 33(11/12): 110–113.Google Scholar
Sternthal, B., Phillips, L. W., and Dholakia, R. 1978. “The Persuasive Effect of Source Credibility: A Situational Analysis.” Public Opinion Quarterly 42(3): 285–314.Google Scholar
Swartz, D. G., and Strand, I. E. 1981. “Avoidance Costs Associated with Imperfect Information: The Case of Kepone.” Land Economics 57(2): 139–150.Google Scholar
Tse, A.C.B. 1999. “Factors Affecting Consumer Perceptions on Product Safety.” European Journal of Marketing 33(9/10): 911–925.Google Scholar
Wessells, C. R., and Anderson, J. G. 1995. “Consumer Willingness to Pay for Seafood Safety Assurance.” Journal of Consumer Affairs 29(1): 85–107.Google Scholar
Wessells, C. R., Miller, C. J., and Brooks, P. M. 1995. “Toxic Contamination and Demand for Shellfish: A Case Study of Demand for Mussels in Montreal.” Marine Resource Economics 10(2): 143–159.Google Scholar