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Use of Spike Models in Measuring Consumers' Willingness to Pay for Non-GM Oil

Published online by Cambridge University Press:  28 April 2015

Wuyang Hu
Wuyang Hu*
Affiliation:
Department of Resource Economics, University of Nevada, Reno. He was a Ph.D. graduate student and postdoctoral research fellow at the Department of Rural Economy at the University of Alberta while completing this manuscript.
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Abstract

In this paper, Chinese consumers' preferences and their willingness to pay (WTP) for non-genetically modified (GM) vegetable oil were elicited by a payment card approach. In addition to the conventional model, spike models, which were originally developed to evaluate public goods, were adopted in this paper. These spike models recognize the possibility of zero WTP and provide opportunities to analyze two correlated decision stages: whether to pay a premium for non-GM oil and how much the premium is. Results show that consumers behaved consistently in the two decision stages and there is a premium associated with non-GM oil.

Keywords

Chinese consumersnon-genetically modified oilspike modelswillingness to payQ13D12C25
Type
Articles
Information
Journal of Agricultural and Applied Economics , Volume 38 , Issue 3 , December 2006 , pp. 525 - 538
Copyright
Copyright © Southern Agricultural Economics Association 2006

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