An Analysis on Perceptions and Economic Effects of the Low-carbon Agriculture Certification System
2015
Kim, W., National Food Safety Information Service, Seoul, Republic of Korea | Lee, C.S., Korea University, Seoul, Republic of Korea | Yang, S.R., Korea University, Seoul, Republic of Korea
The pilot project of low-carbon agriculture certification system has been running since 2012. The purpose of the low-carbon agriculture certification system is to reduce greenhouse gas emissions from agricultural production and enhance the competitiveness of domestic agricultural products. This study examines producers and consumers perceptions of the low-carbon agriculture certification system and analyzes producers willingness to accept (WTA) and consumers willingness to pay (WTP) for the certified products. Some 69.5% of producers perceive that the low-carbon agriculture certification system is necessary. The estimated WTA of the producers is 19.9% in price premium and 24.6% in sales volume. Some 87.6% of consumers reply that they prefer choose low-carbon certificated agricultural organic products to organic products without certification when the price is the same. The consumers reply to pay 7.97% more than the same products without low carbon certification. In addition, when the government provides subsidies to producers participating the program, the estimated cost-benefit ratio is 1.548 considering the carbon reduction effect and income improvement effect.
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