Browsing by Subject "Zahlungsbereitschaft"

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Contingent valuation and money attitudes
(2015) Pelz, Sonna; Ahlheim, Michael
The Contingent Valuation Method (CVM) is one of the most frequently applied techniques to assess and monetise the benefits of environmental improvements. This survey-based method aims to elicit individuals’ willingness to pay (WTP) for enhanced environmental quality by means of hypothetical payment questions. Analysts interpret stated WTP as the monetary equivalent of the utility gain an individual expects to experience due to a specific environmental improvement. In spite of its frequent use, the validity of WTP statements is recurrently questioned and analysts have pointed to several sources of bias, such as a poor CVM survey design or certain characteristics of the respondents. This dissertation focuses on respondent characteristics which hitherto have not been examined, namely individuals’ attitudes towards spending money in general. The disposition of a person to spend money is expected to systematically affect and possibly bias stated WTP. While money attitudes have been extensively studied in psychological research, they have never been considered to be of influence in the context of environmental valuation. Given this lack of research, this dissertation investigates, theoretically and empirically, the role of money attitudes in CVM surveys.
Economic analysis and policy implications of wastewater use in agriculture in the central region of Ethiopia
(2008) Weldesilassie, Alebel Bayrau; Dabbert, Stephan
The general objective of this study was to analyze the impact of wastewater use in agriculture. It mainly focused on three aspects of wastewater use for irrigation and their policy implications: impact on crop production and productivity; its impact on the health of farmers; and the value attached to its safe use for irrigation. The main objectives of the study were, therefore, 1) to define the farming system of wastewater farmers and to analyze the impact of wastewater on crop productivity; 2) to analyze the prevalence of the actual health risks to farmers and estimate the health costs associated with the use of wastewater in irrigation; and 3) to estimate the farmer?s willingness to pay for improved or safe use of wastewater for crop production. This study used mainly primary data collected from a household survey conducted on 415 wastewater and freshwater farm households operating irrigated agricultural activities within and around Addis Ababa, a central region of Ethiopia. A Cobb Douglas production function is specified to analyze the impact of wastewater on crop productivity. The production function was estimated using a Censored Least Absolute Deviation (CLAD) econometric model. To analyze the health impact of wastewater, the probability of illness was estimated based on the theory of the utility maximizing behavior of households subject to the conventional farm household production model modified by adding a health production function. The economic value of safe use of wastewater is estimated from data obtained from a contingent valuation survey administered by in-person interviews. A dichotomous choice model is used to elicit the farmers? willingness to pay. Bivariate probit and interval regression models are used to analyze the factors determining the farmers? willingness to pay for safe use of wastewater for crop production. The study shows that the livelihoods of wastewater farm households depend on the wastewater farm. Income from a wastewater farm accounts for 62% of total annual household income, ranging from 27% to 97%. About 61% of the vegetable market of Addis Ababa, the capital city of Ethiopia with more than five million people, is produced from the wastewater farms. Leafy vegetables, which are eaten raw, are mainly produced in less polluted wastewater farms and root vegetables are produced in more polluted wastewater farms. The study revealed that wastewater farm households use significantly less doses of chemical fertilizer compared to the freshwater irrigators. However, they spend three times more on seed and five times more on farm labor. Net farm return per hectare of plots irrigated with wastewater is significantly higher than for plots irrigated with freshwater. The results also indicate that the predicted median output value per hectare is significantly higher in wastewater irrigated plots compared to plots irrigated with freshwater. The CLAD estimation result shows that higher productivity of wastewater plots is explained by investments in inputs (organic fertilizer, improved seed and agricultural extension services), ownership of plots and levels of pollution of the irrigation water. The overall effect of wastewater on crop productivity is negative and insignificant (compared to freshwater). Plots irrigated with less polluted wastewater are more productive than plots irrigated with more polluted wastewater. The implication of the result is that even if wastewater is a reliable source of irrigation water and contains essential plant nutrients such as NPK, the nutrient content exceeds the recommended level of the plant requirement (e.g. nitrogen) or it contains toxic elements (e.g. nickel, zinc) above the recommended limit, and thereby reduce yield. Due to unsafe wastewater irrigation systems, wastewater use in irrigation actually poses health risks to farmers. Apart from working on wastewater farms, different risk factors prevail that can cause wastewater-related diseases in the studied areas. This study shows that major risk factors causing illness are household demographic characteristics, hygienic behavior of farm families and poor access to sanitation services. Lack of awareness on health risk of wastewater as well as working without protective clothing on the farm are also important risk factors in the study area. The distribution of these risk factors varies between the wastewater and freshwater irrigation areas. The most common incidence of illness reported by farm households are intestinal infection due to hookworm and Ascaris, diarrhea and skin diseases, which also varies between the two groups of farmers as well as within the different areas of wastewater. The findings of this study show that the prevalence of illness is not only significantly higher in farmers working on wastewater farms compared to freshwater irrigators, but is also significantly higher in wastewater areas where the pollution level is higher. The probability of being sick with an intestinal illness is 15% higher for wastewater farmers than for freshwater farmers. Use of protective clothing during farm work and awareness of health risks in working on wastewater farms significantly reduce illness prevalence. In addition, hygienic behavior of farm families including eating safe raw vegetables, compound sweeping, and washing hands before a meal are important determinants of illness prevalence in wastewater irrigation areas. Therefore, use and provision of protective clothing at affordable prices, creating awareness for safe use of wastewater, and reducing the pollution level of irrigation water can significantly decrease the health risk of wastewater use in irrigation. While each of these policy interventions has a significant effect in reducing health risks, combining these measures will result in more significant reduction of health risks to farmers, and thereby maximize the benefit from the wastewater resource as a source of livelihood and vegetable supply to the residents of nearby cities. Farmers are willing to contribute money to improve the existing unsafe irrigation system. Two options were suggested by farmers to improve the existing situation: enforcing laws against polluters who discharge their wastewater without any kind of treatment, and awareness creation of safe use of wastewater for irrigation. Farmers are willing to pay for the improvement programs and there is a welfare gain to the society from safe use of wastewater for crop production. The benefit from irrigated-farming, membership to water users? association, yield value, off-farm income and working on a wastewater farm all significantly determine the farmers? probability of accepting offered bids for the improvement program. In addition to these variables, multi-purpose uses of irrigation water as well as education level determines the farmers? willingness to pay. Irrigation method has no significant effect on the farmers? willingness to pay, implying that introducing water saving and improved irrigation techniques has an important role in improving the situation without affecting the farmers? willingness to pay. Overall, this study shows that wastewater is a means of livelihood for many poor households, but the existing use of wastewater for crop production actually causes health risks both to farmers and consumers. Farmers are willing to contribute to programs designed to improve the existing situation so that it is possible to maximize the livelihood benefit at minimum health risks. However, the results do not necessarily imply that the cost of improving the situation has to be borne by the farmers only. Although the study focuses on the central region of Ethiopia, most conclusions can have a wider application in other parts of the country and in many sub-Saharan African countries where wastewater is used for irrigation.
The food system transformation in Vietnam : challanges for the horticultural sector posed by exports and changing consumer preferences
(2008) Mergenthaler, Marcus; Qaim, Matin
On the background of the food system transformation in developing countries, this cumulative dissertation answers the following research question in three articles: What are the determinants and implications of the food system transformation in the horticultural sector in Vietnam? The first article is entitled ?Quality Assurance Programs and International Market Access: Empirical Evidence from the Vietnamese Horticultural Industry?. It is based on a sample of 50 registered fruit and vegetable processing firms from allover Vietnam. With these firm survey data it is analyzed how private quality assurance programs (QAPs) in Vietnam?s horticultural sector influence the access to international markets. Results of different logistic regression models show that QAPs are critical determinants of international market access. However, the effect is market specific and depends on the type of program implemented. While international QAPs ? like HACCP, GLOBALGAP, or ISO 9000 ? notably improve access to countries of the Organization for Economic Co-operation and Development (OECD), national QAPs seem to be sufficient for exports to non-OECD countries. Domestic market sales decrease the probability of being an OECD exporter and increase the probability of being a non-OECD exporter, suggesting a certain market segmentation between high-value exports on the one hand, and domestic sales and lower-value exports on the other. Although it is argued that the food system transformation is to a large extent demand driven, most of the studies available concentrate primarily on supply side aspects. For this reason, the second article entitled ?Changing Consumer Buying Habits in Developing Countries: A Disaggregate Demand Analysis for Fruits and Vegetables in Vietnam? analyzes changing purchasing and consumption habits for fresh fruits and vegetables. The analysis is based on data from a comprehensive survey of almost 500 households in Vietnam?s two major cities, Hanoi and Ho Chi Minh City. Demand parameters are estimated with an almost ideal demand system (AIDS), disaggregating by product and process attributes that characterize modern, high-value supply chains, i.e. (i) place of purchase, particularly considering modern retailers, (ii) food safety indications, with an emphasis on formal labels, and (iii) region of production, with a focus on imports. Estimation results demonstrate that consumers? purchase decisions to buy fresh fruits and vegetables from emerging modern supply chains are heavily driven by household income (expenditures). Income elasticities range between 1.2 and 2.6. Own-price elasticities were found to be between -1.5 and -1.1 and the elasticities regarding distance to the nearest supermarket are between -0.6 and -0.3. Against the background of Vietnam?s current rapid economic development ? with incomes growing fast and supermarkets reaching higher penetration rates ? high-value agricultural products from modern supply chains will rapidly gain market shares at the expense of products from more traditional sub-sectors. In order to adapt to the new requirements in the horticultural sector, appropriate responses in supply chains are required. Such responses presuppose a good understanding of consumer preferences and valuation of new product attributes. Therefore the third article entitled ?Consumer Valuation of Food Safety and Quality Attributes in Vietnam? analyzes consumers? willingness to pay for different vegetable attributes, using contingent valuation techniques. In a mediation framework, special consideration is given to consumer perceptions. Comprehensive data from the above mentioned household survey in Hanoi and Ho Chi Minh City serve as the basis. Consumers are willing to pay an average price premium of 60% for vegetables that are free of agrochemical residues, and of 20% for a set of convenience attributes, like peeled and pre-cut vegetables. Rising income levels and media use have positive impacts on the willingness to pay. These impacts are partly mediated through different consumer perceptions. From a policy perspective, public media can and should be used to promote the spread of objective information, especially with respect to health issues. The results of the three articles have important implications for rural development strategies in poor countries, which are discussed in a concluding chapter.
The potential of certification for climate change mitigation in the agri-food sector : a case study of carbon neutral certified coffee from Costa Rica
(2017) Birkenberg, Athena; Birner, Regina
Advancing economic, social and environmental sustainability in the agri-food sector is increasingly pursued by various actors along global value chains. One option to address sustainability concerns is to use voluntary sustainability standards and certifications/labels as market-based governance tools for self-regulation. Recently, the demand for particular climate standards and labels has increased, however little is known about their potential and challenges. Individual aspects of such voluntary sustainability certifications have been investigated, such as the effectiveness and impact of certifications or the purchasing decisions of consumers. However, a holistic and interdisciplinary approach by considering the complete value chain is rare and, thus challenges are overlooked and proposed solutions remain limited in scope. Moreover, LCA-based certifications addressing climate change mitigation present a new field of research. Against this background, this thesis aims to elicit the challenges and potential of sustainability certification in the agri-food sector. Taking the case of the world’s first carbon neutral certified coffee, the complete chain – from standard development to consumer choices – has been examined. This coffee is produced by Coopedota, a Costa Rican cooperative of small-scale farmers, and exported to a family-run specialty coffee roaster, Hochland Kaffee Hunzelmann GmbH, in Germany. In the case under consideration, a newly released and highly prescriptive standard for carbon neutrality, the Publicly Available Specification (PAS) 2060, has been adopted since 2011. PAS 2060 is the first independent international standard for carbon neutrality that provides a common definition and a recognized method that is based on a life cycle assessment (LCA). To achieve carbon neutrality, the respective greenhouse gas (GHG) emissions are compiled, before continuous reduction activities are executed and the residual GHG emissions are offset by purchasing carbon credits. Costa Rica is relevant because it is actively pursuing carbon neutrality at the national level and the case of Coopedota serves as a pioneer in this field. In this thesis, an interdisciplinary case study approach is used to investigate in a holistic manner the challenges of carbon neutral certification in the agri-food sector. The study is guided by a conceptual framework developed from relevant literature on voluntary sustainability standards. The three specific objectives of the thesis are: (1) identify the success factors that made the carbon neutral certification in Coopedota possible and understanding the major challenges related to the standards implementation; (2) estimate the potential of on-farm carbon sequestration to compensate for the coffee carbon footprint and reduce carbon offsetting; and (3) estimate the willingness to pay for a carbon neutral label among German consumers of specialty coffee. This thesis contains three main chapters in addition to a general introduction and discussion. The first chapter addresses existing knowledge gaps regarding the role of social network dynamics, actor characteristics and linkages for successful pioneering in sustainable development, and investigates the challenges of implementing PAS 2060 by Coopedota. Qualitative research methods, such as in-depth interviews, participatory social network and process mapping as well as field observations were applied. The study found the prior achievements of the cooperative (e.g. compliance to ISO norms) and a ‘fertile ground’ in terms of ongoing climate change mitigation policies, as important factors for the successful implementation of the standard. Further success factors were a strong central and visionary actor and a diverse network of supporting actors from science, business and politics. The main challenges in implementing the carbon neutral certification were the acquirement of reliable farm data and the advertisement and communication of a carbon neutral label. The second chapter focuses on the problem that biogenic carbon sequestration is rarely considered in LCA-based standards. To estimate the annual potential of biogenic carbon accounting in coffee-agroforestry systems (CAFS) a literature review was conducted and the carbon sequestration based on a carbon inventory at the coffee farms was modeled. The results of a 20-year simulation show that on average, CAFS at Coopedota can compensate the carbon footprint of coffee by approximately 160% annually. Simultaneously, a trade-off between carbon sequestration and productivity at reduced inputs appears, which should be minimized. In the third chapter a marginal willingness to pay (WTP) of € 1.70 for a carbon neutral label was identified on a 250g package of specialty coffee by a discrete choice experiment among German consumers. Yet this marginal WTP was lower than the marginal WTP among the same consumers for direct trade claims or a Fair Trade certificate. Direct trade claims refer to the situation where direct trade relations exist; however, they are not certified and only declared by the retailer, as in the case of the family-run coffee roaster Hochland Kaffee Hunzelmann GmbH. Moreover, a positive synergistic effect was discovered for the combination of the carbon neutral label with direct trade claims. However, a public awareness on the contribution of agriculture to climate change is missing, as is the familiarity of the public with carbon concepts. Concluding, LCA-based certification for carbon neutrality can be a promising market-based tool for the agri-food sector to mitigate climate change. Such certification holds promise because it addresses recent demands for climate relevant information on agri-food products, while benefitting producers, the environment and consumers alike. Examples of these benefits include a potential increase in resource use efficiency, identification and minimization of GHG emission hot spots and trustworthiness among consumers due to the prescriptive nature of the standards. Additionally, the interdisciplinary case study approach enabled the identification of multi-faceted challenges and recommendations. One recommendation is that an agricultural perspective needs to be integrated into the standard by, for example, enabling the accounting of biogenic carbon sequestration. Such carbon accounting would prevent criticism of carbon offsetting and foster synergies between climate change mitigation, sustainability, and resilience. Particularly in the case of higher carbon prices, carbon accounting would be economically interesting but further research is needed to provide a robust dataset to enable it. Independent from a potential premium price for the label, access to capital and governmental support programs, especially for smallholders in less developed countries, can foster the implementation of greener technologies and allow stakeholders to benefit from increased efficiencies. The findings of this thesis indicate that coupling a carbon standard with existing sustainability standards, which use similar datasets, could ease the acquirement of reliable farm data on GHG emissions and reduce costs. Moreover, a coupling of standards could ensure additional sustainability practices, beyond the climate aspect, as already associated by consumers. This study also indicates that to establish markets for carbon neutral products, consumers first have to be aware of the extent of the agri-food sector’s contribution to climate change and consumer responsibility in tackling this problem through their purchasing behavior. This thesis further illustrates the importance of innovators in advancing development goals. Taking action on climate change mitigation and shaping a more sustainable agri-food sector requires strong initiatives and visionaries on the ground, as exemplified by the pioneering case of Coopedota.