Consumer Preferences on Peanut Aflatoxin Safety in Ghana
Type of Degreethesis
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Food safety attracts growing attention in discussions among scientists, policymakers, and the general public. The introduction and enforcement of appropriate regulatory standards for pervasive food toxins, such as aflatoxins, is a major policy issue. This thesis determines consumer preferences for aflatoxin-free peanut, and how consumer concern for food safety impacts willingness to pay for safer foods. To this end, I analyze a contingent valuation data under a utility maximization framework that incorporates ‘risky’ foods. A cumulative binary logistic regression model is estimated. Results show that consumers in Ghana massively approve of aflatoxin regulation interventions, and are prepared to pay a conservative price premium of 16%. Also, findings show that consumers prioritize food safety above all other factors that influence their market decisions, including prices. Guaranteeing good health is a desirable goal for consumers in Ghana.