WEAI/AERE 2012 - Individual Paper Abstract
Title: Assessing the willingness to pay for more sustainably farmed Atlantic salmon in the Pacific Northwest: combining a discrete choice experiment and latent class analysis
Author(s): Winnie YIP (wyip at sfu dot ca), Duncan Knowler and Wolfgang Haider, School of Resource and Environmental Management, Simon Fraser University, Burnaby, BC, Canada [Photo credit: provenance unknown; will be credited or removed upon request]
Abstract:
Maintaining ecosystem services in coastal areas is recognized as a high priority but it can be hindered by conventional aquaculture practices. Integrated Mutli-Trophic Aquaculture (IMTA) combines the culturing of fish and extractive aquaculture species at one site to simulate a balanced natural system and reduce some environmental issues of monoculture systems.
This paper explores consumer preferences for IMTA and Closed Containment Aquaculture (CCA). Both production methods represent alternatives to conventional salmon farming in British Columbia (Canada) because they are more environmentally friendly towards the marine environment. Two questions are posed: (1) how do salmon consumers in the US Pacific Northwest perceive IMTA and its products compared to other salmon aquaculture methods and products; and, (2) what are salmon consumers in the US Pacific Northwest willing to pay for salmon produced by IMTA compared to its potential close substitutes?
Results of a discrete choice experiment revealed willingness to pay (WTP) price premiums of 9.8% and 3.9% for IMTA and CCA, respectively, over conventionally farm produced Atlantic salmon, for the sample as a whole. We found that 44.3% and 16.3% of the respondents preferred the adoption of IMTA and CCA to conventional salmon farming, respectively. Furthermore, we carried out a latent class analysis, finding that a 3-class model fit the respondent data best. To describe the general characteristics of the class members, the classes were labelled: (1) Wild salmon lovers, (2) Price sensitive consumers, and (3) Sustainably farmed salmon supporters. All three classes preferred IMTA over CCA and conventional farming methods to produce Atlantic salmon. Wild salmon lovers were willing to pay almost five times as much (premium of about 50%) as the calculated premium for the full sample for IMTA versus conventionally produced Atlantic salmon, while the other two classes would pay less than a 5% premium. Interestingly, the Sustainably farmed salmon class had a negative price premium for CCA, so they would pay only a lower price for CCA produced salmon than for conventionally farmed salmon.