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Analysis of Consumers' Willingness to Pay for Organic Agricultural Products Using Parametric Survival Model

모수적 생존모형을 이용한 유기농산물의 지불의향 가격 분석

  • 김창길 (한국농촌경제연구원 자원환경연구부) ;
  • 구자춘 (한국농촌경제연구원 산림정책연구부) ;
  • 정학균 (한국농촌경제연구원 산림정책연구부)
  • Received : 2016.02.18
  • Accepted : 2016.05.03
  • Published : 2016.05.30

Abstract

The purpose of this study is to analyze willingness to pay (WTP) for organic agricultural products. To accomplish the objective of the study, a consumer survey was conducted. Based on the pilot survey results, parametric survival model was used to analyze the WTP for organic products. The estimation results showed that the WTP for organic agricultural products is 1.4-fold when compared with the conventional products, which is lower than the current price by about 30 percent. The analytical results also showed that such variables as gender, recognitions for organic agricultural products, and consumers' income have very significant effects on the WTP, and that there are no differences among WTPs by consumption goals. Based on major findings, the most effective countermeasure was suggested for expanding of organic food consumption through the premium reduction of organic products. Reducing the costs of production and distribution, supporting farmers' income by direct payment system were presented. Furthermore, it is needed to allocate more budget for promoting the consumption and distribution of organic agricultural products, and for enhancing conservation of agricultural environment.

Keywords

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