Product Attributes and Consumer Willingness to Pay for Environmental Management Systems in Agriculture: Using the Choice Modeling Technique

Consumer concerns in food purchasing contain a number of elements, including food safety, environment, animal welfare, and other social issues. The purpose of this study was to examine consumer perceptions of the potential benefits of products that are produced using an environmental management system (EMS) in agriculture, and to identify those factors that influence choice. The choice modeling technique uses consumer responses (preferences) to estimate Montrealers= willingness to pay (WTP) for production practices that decrease the impacts on the environment, as well as for other potential benefits of EMS production. Results indicate that consumers are willing to pay a price premium for these environmental benefits. This could provide a justification for government to provide incentives for environmental farm management practices and support to certification and labelling programs.