Consumer Willingness to Pay a Premium for Organic Fruit and Vegetable in Ghana
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This paper analyzes the willingness of consumers to pay a premium for organic watermelon and lettuce using contingent valuation data from urban Kumasi in Ghana. The effects of the determinants of consumer willingness to pay a premium are estimated with a bivariate Tobit model. The empirical findings indicate that in addition to socioeconomic characteristics, product freshness and cleanness tend to have positive effects on consumer willingness to pay a premium for organic watermelon compared to conventional watermelon. Whereas product size has a negative influence on consumer willingness to pay premium for organic lettuce, less insect damage to vegetables tends to have a positive effect. The study estimates the willingness to pay a premium for organic watermelon/lettuce compared to conventional watermelon/lettuce. The estimated mean consumer willingness to pay premium for 1 kilogram of organic w