Bovine Spongiform Encephalopathy in Japan: Consumers' Food Safety Perceptions and Willingness to Pay for Tested Beef

13 Pages Posted: 16 Jun 2005

See all articles by Jill J. McCluskey

Jill J. McCluskey

Washington State University

Kristine Grimsrud

University of New Mexico - Department of Economics

Hiromi Ouchi

Washington State University, Pullman

Tom Wahl

North Dakota State University

Abstract

The discovery of bovine spongiform encephalopathy (BSE), commonly known as 'mad cow disease', in Japan caused anxiety about consuming beef and beef products. As a result, there was a sudden fall in sales of beef that hurt the Japanese beef industry as well as major beef exporters to Japan. We analyse factors that affect Japanese consumers' willingness to pay (WTP) price premiums for BSE-tested beef and estimate the mean WTP for BSE-tested beef using data obtained from a consumer survey in Japan. A single-bounded dichotomous choice contingent valuation model is used to recover the premium amount. We find that attitudes to food safety, reduction in beef consumption following the BSE outbreak, and being female all have a statistically significant positive effect on the WTP for BSE-tested beef. Interestingly, demographic variables such as age and income do not affect the WTP, possibly indicating that the BSE scare similarly affected multiple segments of the population. In our sample, consumers are willing to pay a premium on average of greater than 50 per cent for BSE-tested beef.

Suggested Citation

McCluskey, Jill and Grimsrud, Kristine and Ouchi, Hiromi and Wahl, Thomas, Bovine Spongiform Encephalopathy in Japan: Consumers' Food Safety Perceptions and Willingness to Pay for Tested Beef. Available at SSRN: https://ssrn.com/abstract=739373

Jill McCluskey (Contact Author)

Washington State University ( email )

School of Economic Sciences
Pullman, WA 99164
509-335-2835 (Phone)

Kristine Grimsrud

University of New Mexico - Department of Economics ( email )

1915 Roma NE/Economics Building
Albuquerque, NM 87131
United States

Hiromi Ouchi

Washington State University, Pullman

Pullman, WA 99164
United States

Thomas Wahl

North Dakota State University ( email )

Fargo, ND 58105
United States
7012319481 (Phone)

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