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Sustainability 2014, 6(11), 7768-7786; doi:10.3390/su6117768

Market-Based Instruments for the Conservation of Underutilized Crops: In-Store Experimental Auction of Native Chili Products in Bolivia

Chair Group Agriculture and Food Economics, Technische Universität München, Alte Akademie 12, 85354 Freising, Germany
Received: 12 September 2014 / Revised: 27 October 2014 / Accepted: 3 November 2014 / Published: 5 November 2014
(This article belongs to the Special Issue Challenges for Marketers in Sustainable Production and Consumption)
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Abstract

Native chilies (Capsicum spp.) are currently underutilized in Bolivia, one of this crop’s centers of diversity. Fewer local farmers cultivate native chilies annually due to low market demand. Increasing its private use value can lead to the in-situ conservation of this crop. The objective of the paper is to evaluate the market acceptability of three native chili products: (a) chili marmalade; (b) chili cooking paste; and (c) pickled chilies. Multi-product Becker-DeGroot-Marschak experimental auctions and hedonic tests were conducted with 337 participants in La Paz and Santa Cruz. Data were analyzed using seemingly unrelated regressions. Results suggest that consumers are willing to pay price premiums of about 25–50 percent. Biodiversity conservation and improvements in farmers’ quality of life statements would not have influence on first purchase decisions but rather on repurchase decisions and therefore on consumers’ product loyalty. This in turn could lead to sustainable agro-biodiversity conservation, centered on consumers’ purchase of these products over time. View Full-Text
Keywords: experimental auction; willingness to pay; in-situ conservation; agro-biodiversity; underutilized crop; native crop; chili peppers; Bolivia experimental auction; willingness to pay; in-situ conservation; agro-biodiversity; underutilized crop; native crop; chili peppers; Bolivia
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This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. (CC BY 4.0).

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Garcia-Yi, J. Market-Based Instruments for the Conservation of Underutilized Crops: In-Store Experimental Auction of Native Chili Products in Bolivia. Sustainability 2014, 6, 7768-7786.

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