Using Stated Preference Valuation to Support Sustainable Marine Fishery Management

This study uses a random parameters logit (RPL) model to estimate the Taiwanese preference for northern shrimp (NS) products (NSP) with the Marine Stewardship Council (MSC) label. The estimated results show that, ceteris paribus, the marginal willingness to pay (MWTP) of Taiwanese consumers for NSP...

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Bibliographic Details
Published in:Sustainability
Main Authors: Tzu-Ming Liu, I-Jean Chen, Ho-Ching Jenny Yuan
Format: Article in Journal/Newspaper
Language:English
Published: MDPI AG 2021
Subjects:
discrete choice experiments
prices as signals of product quality
MSC-certified fishery
ecolabel
Veblen effect
envir
northern shrimp
Online Access:https://doi.org/10.3390/su13094838
https://doaj.org/article/22680f0b28654f66bd924a7ac50e575a
Description
Summary:This study uses a random parameters logit (RPL) model to estimate the Taiwanese preference for northern shrimp (NS) products (NSP) with the Marine Stewardship Council (MSC) label. The estimated results show that, ceteris paribus, the marginal willingness to pay (MWTP) of Taiwanese consumers for NSP with the MSC label is up to New Taiwan dollar (NTD) 84.86 in comparison to products without the label. Moreover, the price of MSC-labeled NSP has a positive effect on the quantity demanded by Taiwanese consumers. They also prefer products in smaller packages and with shorter certification periods. The positive effect can be explained by the Veblen effect or the fact that sometimes prices are perceived as signals of product quality. However, the effects of preference for smaller packages and shorter certification periods are minimal compared with the effects of preference for MSC-labeled products. When consumers are unfamiliar with products or labels, a high price is a viable marketing strategy. However, the advantage cannot sustain the promotion of products and labels.

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