Cannabis regulatory reform has opened areas for product innovation and entrepreneurship. One dimension that has so far been understudied is the potential for cannabidiol (CBD) and tetrahydrocannabinol (THC) beverages. This study uses double-bounded contingent valuation techniques and parametric and nonparametric estimation procedures to assess consumer demand and willingness to pay (WTP) for various cannabis-infused beverages. By targeting a nationally representative sample of U.S. adults, the study finds that roughly half of consumers are willing to try cannabis-infused beverages. Among these respondents, cannabis-infused juices and sweetened iced tea elicit the highest mean WTP, though the WTP for other beverage options varies across demographics and consumer preferences. On average, the mean WTP for THC-infused beverages is 12.5% higher per 12 oz can than its CBD-infused counterpart, and younger consumers are willing to pay more for each of these products. These results have important implications for entrepreneurial decision-making, product development, and marketing strategies.

Understanding consumer choices and their drivers of willingness to pay (WTP) for a bottle of wine has been a research challenge in wine economics, particularly in niche markets such as sparkling wine. This study investigates the determinants of WTP for sparkling wine based on data from Portuguese consumers. The results provided by two alternative methodologies are compared: a traditional econometric model, based on the estimation of an ordered probit model; and a modelling approach based on data-driven and using machine learning algorithms. Both approaches present similar results, highlighting the relevance of some determinants including income, Champagne brand, not being a protected designation of origin and being a red wine consumer as main predictors of WTP for sparkling wine in Portugal.

Goat meat consumption has grown in recent years due to dietary and cultural changes. US demand has surpassed domestic supply, presenting an opportunity for industry expansion. This study provides valuable insights into consumer preferences for goat meat. A sample of 1,015 Floridians was randomly assigned to a control and three treatment groups that included information about the health and/or environmental benefits of goat meat. Results show a significant difference in willingness to pay for goat meat under different information treatments. Persuasive marketing campaigns can increase consumers’ preferences for goat meat by raising awareness of the health and environmental benefits.

The wine industry, considered to be male-dominated, has seen a growing share of women winemakers. Using a randomized online experiment, we investigate how the producer’s gender influences consumers’ willingness to pay for the wine. Gender can be identified either from the first name of the producer or from a gendered group of wine producers. Using a Tobit and a double-hurdle model, our results suggest that consumers’ willingness to pay is lower for wine produced by female winemaker groups. This reduction appears to be particularly pronounced when the consumer is male.

Is ‘individualism’ pure selfishness? The climate change literature often assumes so. However, individualism can be seen as capturing values aligned with self-determination and self-achievement but also universalism. Indeed, cultural psychology recognises individualism as reflecting both personal agency and one's embeddedness, not in narrowly defined in-groups, but in society broadly. Through this lens, individualism can be consistent with adopting pro-social behaviours, including climate-friendly behaviours. But the under-exploration of the concept means empirical evidence is limited. Using cross-country, cross-sectional data we find that individualistic values are associated with an increased willingness to take individual-level actions against climate change. Individualism is also not associated with less support for additional taxes levied to fight climate change, and those willing to take more individual level actions against climate change are also more supportive of additional climate change taxes. Overall, our results confirm that individualism can be associated with taking actions for the greater good.

Farmers markets can generate positive externalities by improving food access and negative externalities through pollution. The presence of both may influence people’s willingness to pay (WTP) for living nearby. This study employs spatial hedonic pricing models to estimate the WTP for living near farmers markets in Edmonton, Canada. We find an inverted U-shaped relationship between proximity to a farmers market and property values. Our results suggest that local governments might consider the economic impact of building new or relocating existing farmers markets on residential housing values, alongside the benefits of improved access to high-quality food sources.

We use contingent valuation to estimate hunter and trapper willingness to pay (WTP) for a hypothetical bobcat harvest permit being considered in Indiana. Harvest permits would be rationed, with limits on aggregate and individual harvests. A model of permit demand shows that WTP may be subject to “congestion effects” which attenuate welfare gains from relaxing harvest limits. Intuitively, relaxing limits may directly change an individual’s expected harvest and, hence, WTP. Participation may subsequently change, with congestion offsetting welfare increases. These effects may lead to apparent scope insensitivity that may be endemic in the context of rationed goods.

Cosmetic standards implemented by grocery stores are a substantial barrier to farmers who want to market visually imperfect (VI) produce. However, in recent years, efforts to market VI produce grocery stores have increased. In this study, we estimate the willingness to pay (WTP) for VI organic kale in the Southeastern U.S. using a payment card approach. The results indicate that WTP does not increase when additional information is provided, decreases when areas of imperfections are highlighted, and it is impacted by several consumer characteristics. A profitability case study for a large organic kale producer is also presented.

Previous research links organic purchasing motivations to personal and family health. We conduct a national survey to explore whether this preference intensifies when preparing family meals, especially during Thanksgiving. We find that approximately 83% of consumers change their consumption habits for Thanksgiving, with a notable preference for organic products. Results from the choice experiment indicate willingness to pay premiums for Thanksgiving-themed items, especially those with USDA-certified organic or certified naturally grown labels. These findings underscore policy initiatives that strengthen consumer understanding of organic certifications and support producers in securing them, capitalizing on the seasonal demand surge.

The use of stated preference methods with monetary payments in developing countries can be problematic as barter and paying with labor are common in rural areas. In response, a growing number of stated preference studies explore using monetary and nonmonetary payment options. We contribute to this literature by exploring the impact of monetary vs. labor payment options on values elicited from choice experiment studies conducted in rural developing country settings. We also contribute to the literature by comparing data-gathering methods, specifically individual surveys vs. group information sessions. Our application is the restoration of an ancient irrigation system known as cascading tank systems in Sri Lanka. We conduct a choice experiment to understand the willingness to pay/willingness to contribute of rural households to restore these irrigation systems. We find that in the individual survey setting, there are no significant differences between monetary and labor payments. We also find that there is no difference between the group and individual survey settings for the monetary payment treatment. For the labor payment treatment, the group setting results in a positive payment coefficient for the labor payment attribute. This highlights that labor payments should be used cautiously in group evaluation settings.

Government programs promoting locally produced foods have risen dramatically. But are these programs actually convincing consumers to pay more for locally produced food? Studies to date, which have mostly relied on hypothetical stated preference surveys, suggest that consumers will pay premiums for various local foods and that the premiums vary with the product and presence of any geographic identity. This study reports results from a large field experiment involving 1,050 adult consumers to reveal consumers’ willingness to pay (WTP) premiums for “locally produced” foods – mushrooms and oysters. Despite strong statistical power, this study reveals no positive effect of the locally produced label on consumer WTP. These null results are contrary to most of the existing literature on this topic. The finding that consumers are not willing to pay more for local foods has important implications for state and federal agencies that promote labeling campaigns that seek to increase demand and generate premiums for locally produced foods.

Motivated by traffic congestion and air pollution, Beijing is one of several major cities to restrict vehicle ownership by requiring residents to win a lottery for the right to obtain an additional car. We examine the welfare cost of preventing people from owning cars because of misallocation: under a lottery, some individuals with low willingness to pay (WTP) for cars can obtain cars, while other individuals with high WTP cannot. We estimate welfare costs using a new contingent valuation method survey of Beijing lottery participants which we designed and conducted explicitly for this purpose. We find that restricting vehicle ownership reduced private welfare by 26 billion yuan. Back-of-the-envelope calculations suggest that the benefits of lower congestion and pollution roughly equal the costs. Our WTP estimates indicate a net welfare gain of approximately 32 billion yuan if Beijing’s lottery were replaced with an auction, which is similar to previous estimates.