Emerging versus developed economy consumer willingness to pay for environmentally sustainable food production: A choice experiment approach comparing Indian, Chinese and United Kingdom lamb consumers

Abstract

In China and India, income growth is driving a structural change in dietary patterns away from staples towards more livestock foodstuffs such as meat products, exacerbating already significant environmental pressures from food production. This study uses the choice experiment (CE) method in surveys of Chinese, Indian and United Kingdom lamb consumers to explore potential for environmental labelling of lamb meat in emerging economies to form part of agri-environmental response to these pressures. Choice experiments are a stated-preference nonmarket approach to valuing consumer willingness to pay. Lamb consumers are presented with differing hypothetical products described by attributes describing environmental certification standards, with observed choices and product attributes analysed in a probabilistic Random Utility Model econometric framework. While preference disparities are found between emerging and developed economy consumers, results demonstrate that emerging economy consumers' choice of lamb products can be influenced by production processes that incorporate environmental sustainability. Indian consumers are found to be willing to pay relatively more for environmentally certified production practices than Chinese or UK counterparts. Of the environmental practices considered in this study, Greenhouse Gas minimisation is valued the most, in all three countries.