Claudia Meier, Nadja El Benni, Srinivasaiah Sakamma, Simon Moakes, Christian Grovermann, Sylvain Quiédeville, Hanna Stolz, Matthias Stolze and K. Basegowda Umesh
Biofortification of staple crops is a promising strategy to alleviate micronutrient deficiencies in rural populations of the developing world. The possibility to sell biofortified…
Abstract
Purpose
Biofortification of staple crops is a promising strategy to alleviate micronutrient deficiencies in rural populations of the developing world. The possibility to sell biofortified crops at “a good market price” plays a vital role for the acceptance by smallholder farmers. This study is therefore focused on non-farming consumers' willingness to pay (WTP) for biofortified crops.
Design/methodology/approach
Specifically, we elicited non-farming consumers' WTP a premium for the improved iron content (+30% iron) in a 1kg finger millet bag using a 2nd price Vickrey auction with six auction rounds and one health- and one process-related information treatment. Due to multiple bids per subject, premiums were analyzed using a linear mixed-effects model, controlling for market feedback and auction round.
Findings
Despite more than half of the respondents being skeptical toward new crop varieties, the acceptance rate was very high (98% with a WTP above zero). The average premium amounted to 27% and could be significantly increased with the provision of health-related information. In contrast, information about the breeding method was ineffective. The WTP was significantly higher for higher income and lower for higher age, education and skepticism toward new crop varieties and increased with increasing rounds.
Research limitations/implications
Our results suggest that non-farming consumers are willing to pay “a good market price” for iron-biofortified finger millet. Our analysis also confirms the importance of health-related information for raising consumers' WTP. This information supports the further development and introduction of biofortified crops to alleviate micronutrient malnutrition.
Originality/value
This study adds to the still limited literature on consumers' WTP for iron-biofortified crops in India, focusing on non-farming consumers to assess the price such crops can achieve on the market.
Details
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The study is carried out to analytically reconnoiter geotechnical index properties of subgrade soils as key variables that shape the cost profile of road infrastructure projects…
Abstract
Purpose
The study is carried out to analytically reconnoiter geotechnical index properties of subgrade soils as key variables that shape the cost profile of road infrastructure projects in a tropical geographic setting with starkly heterogenous ground conditions.
Design/methodology/approach
Using the Niger Delta region, as a point of reference, data on geotechnical index properties of subgrade soils at spatially dispersed locations for 61 completed highway projects are collated. Exploratory statistical tests were carried out to infer significant associations with final project costs before regression analysis. Regression analysis is principally deployed as an explanatory analytical tool, relevant to quantify the sensitivity of highway project costs to the individual and collective impact of geotechnical variables.
Findings
Several parameters of expansivity and compressibility exhibited significantly strong associations with the final costs recorded on the highway projects. The statistical analysis further established a cause-effect relationship, whereby small changes in the geotechnical properties of sub-grade soils at project locations, would result in disproportionately large changes in the cost of road construction.
Practical implications
The study findings provide insight into the sensitivity of road construction costs to geotechnical variables, which can serve as a useful input in financial risk analysis for development appraisal and the generation of location adjustment factors.
Originality/value
The study statistically demonstrates location-induced construction cost profiles, triggered in response to the spatial geotechnical variability and occurrence of problem subgrade soils in the humid tropics, which may be different from those traditionally established in studies of cold and temperate climate soils.