Can the Part Replace the Whole? A Choice Experiment on Organic and Pesticide-Free Labels

Abstract

Chemical pesticides are a serious impediment to agricultural sustainability. A large-scale reduction in their use to secure food supplies requires more innovative and flexible production systems. Pesticide-free production standards bring together the strengths of all participants in the food value chain and could be the catalyst for this transition. Using a choice experiment approach and green tea as an example, this study investigated consumers’ preferences for organic and pesticide-free labels. According to the findings, organic and pesticide-free labels and brands are all major factors that affect consumers’ purchase decisions. Consumers are more willing to pay for organic labels than pesticide-free labels. There is a substitution effect between organic labels and pesticide-free labels. Complementary effects exist between organic labels and national brands, pesticide-free labels, and national brands. Consumer trust has an impact on consumers’ choice of organic labels and pesticide-free labels. The use of pesticide-free labels is an alternate approach for small- and medium-sized businesses in a specific market to lower the cost of organic certification.