The Economic Valuation Of Organic Products, Application Of Stated Preferences Approach (Case Study: Organic tomatoes of Dasht-e Marghab)

Document Type : Research Paper

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university

Abstract

In recent years, increased public awareness of the detriment of consuming common products, during whose production chemical fertilizers and pesticides are used, on the one hand, and the benefits of organic farming for health and environment, on the other hand, have caused an increase in the demand for organic products. Due to the yield loss in product in organic farming because of the lack of the use of chemicals, the estimation of the consumers' willingness to pay, for surveying the market of these products, and estimating the total economic value of the desired product, seem necessary. In this study, 400 questionnaires were collected from the residents of Dasht-e Marghab County, through random sampling method, in 2015. Results of the estimate logit model show that 70.25% of consumers are willing to pay more for buying organic tomatoes rather than ordinary tomatoes. Finally, it was determined that consumers are willing to buy each kilogram of organic tomatoes for 34,700 rials, and the total economic value of organic tomatoes in the region, considering the yield loss in transition from conventional farming to organic farming, due to the yield loss proceeding from the change in farming system, was determined over 487 billion rials. Also, according to the cultivated area, the economic value per hectare of tomatoes (organic) in a hypothetical market, formed from the demand side, was estimated equal to 1.6 billion rials.

Keywords

References

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Iranian Journal of Agricultural Economics and Development Research
Volume 47, Issue 2
December 2016
Pages 325-334

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