Journal of Rural Development
The Consumer Welfare Impacts of Public Food Quality Control
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AuthorKwon, Ohsang
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Publication Date2017.06.30
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Original
Our study estimates consumer’s willingness to pay for the public services on food safety management and regulation conducted by the National Agricultural Products Quality Management Service (NAQS) of Korea. The WTPs for the three main programs, food safety inspection and regulation, country of origin labelling management, and certification of environment-friendly agro-fishery products and good agricultural practices (GAP), are estimated based on the choice experiments designed to incorporate observed real market data. It is shown that the WTP for each program far exceeds its management cost. Food safety inspection and regulation and country of origin labelling management showed WTP estimates much larger than the certification program. Moreover, it is found that raising the market share of GAP through the certification system may enhance consumer welfare because the estimated consumer preference for GAP was very high compared to the current market share of GAP.
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