Analysis of Willingness to Pay for Low-Carbon Agrifood for Sustainable Agriculture: The Case of the 20s

Abstract

This study estimates the consumer value provided by low-carbon agrifood with a focus on people in their 20s, who are current and future consumers. Information was collected regarding the respondents' experiences, environmental awareness, perceptions of climate change and low-carbon agrifood, and their willingness to pay for it. Consumer preference for low-carbon agrifood was analyzed using the Contingent Valuation Method, which is commonly employed to estimate consumers' willingness to pay for non-market goods. To closely align with real market conditions and to facilitate respondents' answers to questions, a double-bounded dichotomous choice format was utilized. The empirical results show that for people in their 20s, the willingness-to-pay ratio for low-carbon agrifood was approximately 27% relative to conventional food. Environmental interest shown by such consumers had a statistically significant impact on the willingness-to-pay decision for these products, while treatment information, climate change awareness, and prior purchasing experiences contributed to numerical differences in the willingness-to-pay ratio. The analysis indicates a noticeable shift in willingness to pay based on the level of environmental concern. Therefore, prioritizing enhancement of individuals' awareness and interest in their environment should be considered a primary focus. However, while the awareness of climate change and the environment among individuals in their 20s appears to be high, their recognition of low-carbon agrifood seems comparatively low.