Upside risk, consumption value, and market returns to food safety
We investigate the effect of a modest food safety premium on semisubsistence farmers' investment in a food safety technology. We demonstrate theoretically that in the face of production uncertainty, a market incentive below the marginal production cost of achieving the safety standard can increase f...
| Main Authors: | , , , |
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| Format: | Journal Article |
| Language: | Inglés |
| Published: |
Wiley
2023
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| Subjects: | |
| Online Access: | https://hdl.handle.net/10568/124974 |
| _version_ | 1855533360749740032 |
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| author | Hoffmann, Vivian Kariuki, S. Pieters, J. Treurniet, M. |
| author_browse | Hoffmann, Vivian Kariuki, S. Pieters, J. Treurniet, M. |
| author_facet | Hoffmann, Vivian Kariuki, S. Pieters, J. Treurniet, M. |
| author_sort | Hoffmann, Vivian |
| collection | Repository of Agricultural Research Outputs (CGSpace) |
| description | We investigate the effect of a modest food safety premium on semisubsistence farmers' investment in a food safety technology. We demonstrate theoretically that in the face of production uncertainty, a market incentive below the marginal production cost of achieving the safety standard can increase food safety investment among farmers motivated by private health returns. We test this prediction through a randomized controlled trial in Kenya through which members of existing farmer groups were offered an opportunity to purchase a food safety input, and half were offered a 5% market premium for produce that met the associated regulatory standard. Access to the premium more than doubled investment in the food safety technology. In line with the model's prediction, most premium-induced adoption was by farmers motivated by a combination of health and financial rewards. |
| format | Journal Article |
| id | CGSpace124974 |
| institution | CGIAR Consortium |
| language | Inglés |
| publishDate | 2023 |
| publishDateRange | 2023 |
| publishDateSort | 2023 |
| publisher | Wiley |
| publisherStr | Wiley |
| record_format | dspace |
| spelling | CGSpace1249742024-11-07T09:51:45Z Upside risk, consumption value, and market returns to food safety Hoffmann, Vivian Kariuki, S. Pieters, J. Treurniet, M. food safety We investigate the effect of a modest food safety premium on semisubsistence farmers' investment in a food safety technology. We demonstrate theoretically that in the face of production uncertainty, a market incentive below the marginal production cost of achieving the safety standard can increase food safety investment among farmers motivated by private health returns. We test this prediction through a randomized controlled trial in Kenya through which members of existing farmer groups were offered an opportunity to purchase a food safety input, and half were offered a 5% market premium for produce that met the associated regulatory standard. Access to the premium more than doubled investment in the food safety technology. In line with the model's prediction, most premium-induced adoption was by farmers motivated by a combination of health and financial rewards. 2023-05 2022-10-11T12:16:27Z 2022-10-11T12:16:27Z Journal Article https://hdl.handle.net/10568/124974 en https://onlinelibrary.wiley.com/action/downloadSupplement?doi=10.1111%2Fajae.12349&file=ajae12349-sup-0001-Supinfo.pdf Open Access Wiley Hoffmann, V., Kariuki, S., Pieters, J. and Treurniet, M. 2023. Upside risk, consumption value, and market returns to food safety. American Journal of Agricultural Economics 105(3): 914–939. |
| spellingShingle | food safety Hoffmann, Vivian Kariuki, S. Pieters, J. Treurniet, M. Upside risk, consumption value, and market returns to food safety |
| title | Upside risk, consumption value, and market returns to food safety |
| title_full | Upside risk, consumption value, and market returns to food safety |
| title_fullStr | Upside risk, consumption value, and market returns to food safety |
| title_full_unstemmed | Upside risk, consumption value, and market returns to food safety |
| title_short | Upside risk, consumption value, and market returns to food safety |
| title_sort | upside risk consumption value and market returns to food safety |
| topic | food safety |
| url | https://hdl.handle.net/10568/124974 |
| work_keys_str_mv | AT hoffmannvivian upsideriskconsumptionvalueandmarketreturnstofoodsafety AT kariukis upsideriskconsumptionvalueandmarketreturnstofoodsafety AT pietersj upsideriskconsumptionvalueandmarketreturnstofoodsafety AT treurnietm upsideriskconsumptionvalueandmarketreturnstofoodsafety |