Factors Influencing Households Willingness to Pay for Pesticides-Free Fresh Apple in District Peshawar, Khyber Pakhtunkhwa (KP) Pakistan
Factors Influencing Households Willingness to Pay for Pesticides-Free Fresh Apple in District Peshawar, Khyber Pakhtunkhwa (KP) Pakistan
Jahangir khan* and Abbas Ullah Jan
ABSTRACT
This study measured household’s willingness to pay for pesticides-free fresh fruits, produced locally, such as Apple. For data collection, a sample of 200 households was randomly selected from urban and rural region of Peshawar district of Khyber Pakhtunkhwa Province. Sampled households were interviewed face to face. An open-ended CVM question was designed to elicit households’ willingness to pay (WTP) and a linear regression analysis conducted to identify important determinants of households’ WTP. Results show that 93% of respondents are willing to pay a price premium of PKR. 14. Empirical findings reveal that socio-demographic characteristics like age, education and income have positive significant effects on households’ willingness to pay. Findings of the study also reveal a significant influence of employment status of the household’s head on WTP, whereas household’s size has a negative significant effect on willingness to pay for pesticides- free fruit. Findings of the study indicate that in addition to demographic characteristics, households’ perception regarding health concern and environment concern tend to have a positive influence on willingness to pay for pesticides free fruit. Households in the study area are willing to pay 14 percent more price premium suggests households’ demand for pesticides free apple in the study area.
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