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1. Are consumers no longer willing to pay more for local foods? A field experiment

   https://doi.org/10.1017/age.2023.27  

   Davidson, Kelly A; Khanal, Badri; Messer, Kent D (April 2024, Agricultural and Resource Economics Review)

   Abstract Government programs promoting locally produced foods have risen dramatically. But are these programs actually convincing consumers to pay more for locally produced food? Studies to date, which have mostly relied on hypothetical stated preference surveys, suggest that consumers will pay premiums for various local foods and that the premiums vary with the product and presence of any geographic identity. This study reports results from a large field experiment involving 1,050 adult consumers to reveal consumers’ willingness to pay (WTP) premiums for “locally produced” foods – mushrooms and oysters. Despite strong statistical power, this study reveals no positive effect of the locally produced label on consumer WTP. These null results are contrary to most of the existing literature on this topic. The finding that consumers are not willing to pay more for local foods has important implications for state and federal agencies that promote labeling campaigns that seek to increase demand and generate premiums for locally produced foods. 

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2. Consumer willingness-to-pay for a resilient electrical grid

   https://doi.org/10.1016/j.eneco.2024.107345  

   Lambert, Dayton M.; Ripberger, Joseph T.; Jenkins-Smith, Hank; Silva, Carol L.; Bowman, Warigia; Long, Michael A.; Gupta, Kuhika; Fox, Andrew (March 2024, Energy Economics)

   The research objective is to estimate consumer willingness to pay (WTP) for electricity grid fortification. Data are from a representative survey of Oklahoma citizens. Extreme weather events, aging utility infrastructure, increased demand for affordable energy, and terrorism threaten the safety and security of the way most citizens access electricity. This study is a first look at public willingness to support energy grid security measures in the United States Southern Great Plains. Findings suggest that consumers would pay an additional 14.69 in monthly utility bills for a fortified grid. This WTP estimate is close to a recent energy bill hike of 14 initiated by local electricity providers. The findings provide policymakers and energy providers with information on consumer willingness to support efforts to modernize the current grid. 

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3. Are Consumers Willing to Pay for Security and Privacy of IoT Devices?

   PARDIS EMAMI-NAENI, JANARTH DHEENADHAYALAN (January 2023, In Proceedings of the 32nd USENIX Security Symposium)

   Internet of Things (IoT) device manufacturers provide little information to consumers about their security and data handling practices. Therefore, IoT consumers cannot make informed purchase choices around security and privacy. While prior research has found that consumers would likely consider security and privacy when purchasing IoT devices, past work lacks empirical evidence as to whether they would actually pay more to purchase devices with enhanced security and privacy. To fill this gap, we conducted a two-phase incentive compatible online study with 180 Prolific participants. We measured the impact of five security and privacy factors (e.g., access control) on participants’ purchase behaviors when presented individually or together on an IoT label. Participants were willing to pay a significant premium for devices with better security and privacy practices. The biggest price differential we found was for de-identified rather than identifiable cloud storage. Mainly due to its usability challenges, the least valuable improvement for participants was to have multi-factor authentication as opposed to passwords. Based on our findings, we provide recommendations on creating more effective IoT security and privacy labeling programs. 

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4. Comparing experimental auctions and real choice experiments in food choice: a homegrown and induced value analysis

   https://doi.org/10.1093/erae/jbad033  

   Caputo, Vincenzina; Lagoudakis, Angelos; Shupp, Robert; Bazzani, Claudia (October 2023, European Review of Agricultural Economics)

   Abstract This study compares a real choice experiment (RCE) with three commonly used experimental auction (EA) mechanisms (Becker–DeGroot–Marschak, random nth price auction (RNPA), second price auction (SPA)) to determine whether willingness to pay (WTP) estimates differ across these elicitation methods. We use quality labels on eggs as the empirical application and find that the SPA, RNPA and RCE yield similar WTP estimates, while the BDM mechanism generally produces higher WTP estimates. We also compare these EAs and the RCE in an induced value setting and find that the BDM auction produces greater deviations from the underlying value than the other EAs and RCE. We suggest that RCEs may be preferable to BDMs for collecting WTP estimates in logistically difficult experimental settings. 

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5. Watts at stake: Concern and willingness-to-pay for electrical grid improvements in the United States

   https://doi.org/10.1016/j.erss.2023.103179  

   Long, Michael A.; León-Corwin, Maggie; Peach, Kaitlin; Olofsson, Kristin L.; Ripberger, Joseph T.; Gupta, Kuhika; Silva, Carol L.; Jenkins-Smith, Hank (August 2023, Energy Research & Social Science)

   Utilizing a random sample of Oklahoma, USA residents, this paper examines the factors that are 1) associated with concern for the current state of the electrical grid in Oklahoma, and 2) associated with willingness-to-pay (WTP) for electrical grid improvements in the state. We develop a conceptual model using a risk perception framework and based on previous literature to hypothesize which variables should be related to our dependent variables (concern for the electrical grid, and WTP for improvements to the grid). We then test our conceptual model using a structural equation model (SEM). The results suggest that respondents who hold higher perceptions of weather-related risks and perceive more risks from electrical outages had greater concern for electricity infrastructure. Additionally, respondents who expressed less trust in those charged with electrical grid maintenance reported more concern for electricity infrastructure. The results for our second research question suggest that lower cost, respondents who were more politically liberal, non-white, trust grid maintenance, perceived risks of electrical outages and have concerns for the electrical grid infrastructure were all related to WTP for electrical grid improvements. We conclude the paper with implications of our findings and some brief recommendations for electrical grid concern and WTP for modernization. 

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