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Article

Consumer Preferences and Welfare Evaluation under Current Food Inspection Measures in China: Evidence from Real Experiment Choice of Rice Labels

1
College of Humanities and Social Development, Nanjing Agricultural University, Nanjing 210095, China
2
Institute of Regional Agriculture, Nanjing Agricultural University, Nanjing 210095, China
3
Department of Agricultural Economics, Sociology, and Education, Penn State University, University Park, State College, PA 16802, USA
4
College of Economics and Management, Nanjing Agricultural University, Nanjing 210095, China
*
Author to whom correspondence should be addressed.
Sustainability 2018, 10(11), 4003; https://doi.org/10.3390/su10114003
Received: 13 October 2018 / Revised: 29 October 2018 / Accepted: 30 October 2018 / Published: 1 November 2018
Frequent food quality and safety issues result in various food inspection measures in China, while some are not widely acknowledged by the public and are less efficient. Consumer demand is significant for priority setting in food policy. This study investigates Chinese consumers’ heterogeneous preferences for selected food inspection measures and estimates welfare effects based on willingness-to-pay (WTP) calculation. Rice consumption data from a 2018 nationwide consumer survey designed using the real choice experiment is analyzed by the random parameters logit and the latent class model. The findings reveal that consumers place a high value on government certification, and brand is valuable especially when public management is perceived as weak. However, the insufficient market demand for third-party certification may increase transaction costs due to overlapping functions and consumers’ distrust. Moreover, there should be a need to broaden consumers’ understanding of traceability and grading systems. This study emphasizes the necessity of direct governmental involvement and the existence of unnecessary policy cost. View Full-Text
Keywords: food inspection measures; real choice experiment; consumer preferences; willingness to pay; consumer welfare food inspection measures; real choice experiment; consumer preferences; willingness to pay; consumer welfare
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MDPI and ACS Style

Nie, W.; Abler, D.; Zhu, L.; Li, T.; Lin, G. Consumer Preferences and Welfare Evaluation under Current Food Inspection Measures in China: Evidence from Real Experiment Choice of Rice Labels. Sustainability 2018, 10, 4003. https://doi.org/10.3390/su10114003

AMA Style

Nie W, Abler D, Zhu L, Li T, Lin G. Consumer Preferences and Welfare Evaluation under Current Food Inspection Measures in China: Evidence from Real Experiment Choice of Rice Labels. Sustainability. 2018; 10(11):4003. https://doi.org/10.3390/su10114003

Chicago/Turabian Style

Nie, Wenjing, David Abler, Liqun Zhu, Taiping Li, and Guanghua Lin. 2018. "Consumer Preferences and Welfare Evaluation under Current Food Inspection Measures in China: Evidence from Real Experiment Choice of Rice Labels" Sustainability 10, no. 11: 4003. https://doi.org/10.3390/su10114003

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