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Consumers' Valuation of Geographical Indication‐Labeled Food: The Case of Hom Mali Rice in Bangkok*
Author(s) -
Lee Ji Yong,
Pavasopon Noppawong,
Napasintuwong Orachos,
Nayga Rodolfo M.
Publication year - 2020
Publication title -
asian economic journal
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.345
H-Index - 28
eISSN - 1467-8381
pISSN - 1351-3958
DOI - 10.1111/asej.12196
Subject(s) - valuation (finance) , economics , geographical indication , agricultural economics , contingent valuation , geography , willingness to pay , regional science , microeconomics , finance
This study investigated consumers' valuation of geographical indication (GI) and protected geographical indication (PGI)‐labeled rice in Bangkok using a non‐hypothetical experimental auction in a field setting. We also examined the effects of sequentially providing information about geographical indications on product valuation. The results suggest that consumers are willing to pay premiums for rice with geographical certifications, with the highest premium for the rice with both GI and PGI certifications. The provision of detailed information about the geographical indications further increases the premiums. However, consumers suffer a welfare loss under the current high market prices for rice with geographical certifications. A price reduction of approximately 10 percent would be needed to gain consumer welfare from the introduction of GI and PGI certification.