Biotechnology to sustainability: Consumer preferences for food products grown on biodegradable mulches

Abstract

This study evaluates consumer preferences for an agricultural product grown on biodegradable mulch film, which is an environmentally friendly soil cover that sustains plant growth, but that avoids the environmental harm of plastic pollution from non-biodegradable mulches in the field or upon disposal. Using a dichotomous-choice contingent valuation method, we assessed the willingness to pay for strawberries grown on biodegradable mulch with a randomized information treatment on 1510 consumers across different regions of the United States. On average, consumers are willing to pay 10.3% more for food -strawberries in our case- grown on biodegradable mulches. Consumers who are female, earn a higher income, have stronger environment-friendly attitudes, or received the information treatment on the benefits of biodegradable mulches, also expressed more willingness to pay a premium price for strawberries grown on biodegradable mulches. Our findings support that consumers are willing to internalize a price premium for food products on biodegradable mulches, suggesting that agricultural producers could realize private benefits from price premiums that could, in turn, generate social benefits by increasing biodegradable mulch use, leading to a reduction of plastic pollution. By providing empirical evidence on the potential adoption of biotechnology in the food production system, our results allow agricultural crop producers to make more informed decisions on growing and pricing strategies. Our research will also facilitate agricultural scientists and policymakers to articulate industry-supporting policies for sustainable development.

Keywords: Biodegradable mulches; Consumer preference; Contingent valuation; Strawberry; Sustainability policy; Willingness to pay.