Assessing Household Willingness to Pay for Compost Attributes from Food Waste
DOI:
https://doi.org/10.36877/mjae.a0000606Abstract
The production of solid waste continues to increase, and food waste is the most significant portion of solid waste. Given its negative impact on the environment, food waste has received attention and concern from many parties. This is because food waste increases costs associated with managing food waste in Malaysia and the emission of greenhouse gases that contribute to global warming. Compared to other solid trash, food waste has a low recycling percentage rate. Converting food waste into compost could be one of the solutions to reduce the generation of solid waste. To ensure that the compost made from food waste is marketable, it is essential to determine the household’s willingness to pay (WTP) and its determinants. Therefore, this study aims to determine the households’ WTP for compost attributes from food waste and to identify socio-demographic factors that can influence households’ WTP for compost attributes. The data was collected among the households in Klang Valley, Malaysia, using a purposive sampling method, and 201 respondents completed the survey. A discrete choice experiment determined the households’ WTP for compost attributes from food waste. The results suggested that the households would pay more for certified compost than uncertified compost. The findings also indicated that households' WTP for compost attributes from food waste varied by gender and income level. Since the households were willing to pay more for compost attributes, this suggests that this product can be marketed, and this can be translated into business opportunities if the producers or marketers can respond to the demand of the households. The findings from this study can be used to design appropriate marketing strategies to promote compost from food waste.
References
Adebo, G. M., & Ajewole., O. C. (2012). Gender and the Urban Environment: Analysis of Willingness to Pay for Waste Management Disposal in Ekiti-State, Nigeria. American International Journal of Contemporary Research, Vol. 2(5).
Agyekum, E. O., Ohene-Yankyera, K., Keraita, B., Fialor, S. C., & Abaidoo, R. C. (2014). Willingness to pay for faecal compost by farmers in Southern Ghana. Journal of Economics and Sustainable Development, 5(2), 18. Retrieved from http://www.iiste.org
Ankamah-Yeboah, I., Jacobsen, J. B., & Olsen, S. B. (2018). Innovating out of the fishmeal trap: The role of insect-based fish feed in consumers’ preferences for fish attributes. British Food Journal, 120, 2395–2410. https://doi.org/10.1108/BFJ-11-2017-0604.
Boyer, R. H. W., Hunka, A. D., Linder, M., Whalen, K., & Habibi, S. (2020). Product Labels for the Circular Economy: Are Customers Willing to Pay for Circular? Sustainable Production and Consumption. doi: 10.1016/j.spc.2020.10.010
Boyer, R., Hunka, A. D., Linder, M., Whalen, K., & Habibi, S. (2021). Product labels for the circular economy: Are customers willing to pay for circular? Sustainable Production and Consumption, 27, 61–71. https://doi.org/10.1016/j.spc.2020.10.010
Cantillo, J., Martín, J. C., & Román, C. (2020). Discrete choice experiments in the analysis of consumers’ preferences for finfish products: A systematic literature review. Food Quality and Preference, 84, 103952. https://doi.org/10.1016/j.foodqual.2020.103952
Campbell, J., Rihn, A., & Khachatryan, H. (2020). Factors influencing home lawn fertilizer choice in the United States. HortTechnology, 30(2), 210-220. https://doi.org/10.21273/HORTTECH04454-19
Daadi, E. B., & Latacz-Lohmann, U. (2022). Composting municipal solid waste for agriculture in Northern Ghana: Rural farmers’ willingness to pay for compost quality and access attributes. Q Open, 2(1). https://doi.org/10.1093/qopen/qoac012
Danso, G. K., Otoo, M., Ekere, W., Ddungu, S., & Madurangi, G. (2017). Market feasibility of faecal sludge and municipal solid waste-based compost as measured by farmers’ willingness-to-pay for product attributes: Evidence from Kampala, Uganda. Resources, 6(3), 31.
https://doi.org/10.3390/resources6030031
Darnall, N., Ji, H., Vazquez-Brust, D.A., 2018. Third-party certification, sponsorship, and consumers’ ecolabel use. J. Bus. Ethics 150, 953–969.
De Silva, L. H. N., Lakmali, C. D. A., Jayasinghe-Mudalige, U. K., Dharmakeerthi, R. S., Dandeniya, W. S., & Balasooriya, W. K. (2018). Replacing the chemical fertilizer through eco-friendly technologies developed for paddy cultivation: How much farmers are willing-to-pay for? Agricultural Economics and Business, 2(2), 28-37. https://doi.org/10.4038/aeb.v2i2.60
Gavertson, I., Milios, L., & Dalhammar, C. (2018). Quality labelling for re-used ICT equipment to support consumer choice in the circular economy. Journal of Consumer Policy, 43(2), 353-
https://doi.org/10.1007/s10603-018-9397-9
Ghafar S.W.A. (2017). Food Waste in Malaysia: Trends, Current Practices and Key Challenges. FFTC.AP. https://ap.fftc.org.tw/article/1196
Ghosh, P. R., Fawcett, D., Sharma, S., & Poinern, G. E. J. (2016). Progress towards Sustainable Utilisation and Management of Food Wastes in the Global Economy. International Journal of Food Science, 2016, 1–
https://doi.org/10.1155/2016/3563478
Gwara, S., Wale, E., Lundhede, T. H., Jourdain, D., & Odindo, A. (2023). Ex-ante demand assessment and willingness to pay for human excreta derived co-compost: Empirical evidence from rural South Africa. Journal of Cleaner Production, 388, 135570. https://doi.org/10.1016/j.jclepro.2022.135570
Hall, S. M., Tikku, V., & Heiger-Bernays, W. J. (2023). Potential policy and community implications of equitable organic waste, compost, and urban agricultural systems in the United States. Environmental Health Perspectives. https://doi.org/10.1289/EHP12921
Hao, J., Knoll, A. H., Huang, F., Schieber, J., Hazen, R. M., & Daniel, I. (2020). Cycling phosphorus on the Archean Earth: Part II. Phosphorus limitation on primary production in Archean ecosystems.
Geochimica Et Cosmochimica Acta, 280, 360–377. https://doi.org/10.1016/j.gca.2020.04.005
Hassan, M. S., Hayin, M. N., Ismail, M. R., & Mahmud, N. H. (2021). 14 Juta Tan Sampah pada 2022. Harian Metro. Retrieved from https://www.hmetro.com.my/utama/2021/07/732770/14-
Hazen, B. T., Mollenkopf, D. A., & Wang, Y. (2016). Remanufacturing for the Circular Economy: An examination of consumer switching behavior. Business Strategy and the Environment, 26(4), 451–
https://doi.org/10.1002/bse.1929
Herbes, C., Dahlin, J., & Kurz, P. (2020). Consumer willingness to pay for proenvironmental attributes of biogas digestate-based potting soil. Sustainability, 12(16), 6405. https://doi.org/10.3390/su12166405
Howarth, R. W. (2014). A bridge to nowhere: methane emissions and the greenhouse gas footprint of natural gas. Energy Science & Engineering, 2(2), 47–60. https://doi.org/10.1002/ese3.35
Hu, T., Al Mamun, A., Reza, M. N. H., Wu, M., & Yang, Q. (2024). Examining consumers’ willingness to pay premium price for organic food. Humanities and Social Sciences Communications, 11(1), Article 37. https://doi.org/10.1057/s41599-024-03789-6
Keng, Z. X., Chong, S., Ng, C. G., Ridzuan, N. I., Hanson, S., Pan, G., Lau, P. L., Supramaniam, C. V., Singh, A., Chin, C. F., & Lam, H. L. (2020). Community-scale composting for food waste: A life-cycle assessment-supported case study. Journal of Cleaner Production, 261, 121220. https://doi.org/10.1016/j.jclepro.2020.121220
Khachatryan, H., Suh, D. H., Zhou, G., & Dukes, M. D. (2016). Sustainable urban landscaping: consumer preferences and willingness to pay for turfgrass fertilizers. Canadian Journal of Agricultural Economics/Revue Canadienne D’agroeconomie, 65(3), 385–407. https://doi.org/10.1111/cjag.12129
Lang, M., & Rodrigues, A. C. (2022). A comparison of organic-certified versus non-certified natural foods: Perceptions and motives and their influence on purchase behaviors. Appetite. https://doi.org/10.1016/j.appet.2021.105698
Louviere, J. J., Flynn, T. N., & Carson, R. T. (2010). Discrete choice experiments are not conjoint analysis.
Journal of Choice Modelling, 3(3), 57–72. https://doi.org/10.1016/s1755-5345(13)70014-9
Majbar, Z., Lahlou, K., Abbou, M. B., Ammar, E., Triki, A., Abid, W., Nawdali, M., Bouka, H., Taleb, M., Haji, M. E., & Raïs, Z. (2018). Co-composting of olive mill waste and Wine-Processing waste: An application of compost as soil Amendment. Journal of Chemistry, 2018, 1–9. https://doi.org/10.1155/2018/7918583
Mancuso, T., De Cianni, R., & Zanchini, R. (2024). Understanding Italian consumers' perceptions of tomato agricultural innovation: Exploring the nexus between sustainability, health, and consumer beliefs. Journal of Cleaner Production. https://doi.org/10.1016/j.jclepro.2023.140528
McFadden. (1974). The Measurement of Urban Travel Demand Journal of Public Economics, 3 (4) (1974), pp.
-328, 10.1016/0047-2727
Nainggolan, D., Pedersen, A. B., Smed, S., Zemo, K. H., Hasler, B., & Termansen, M. (2019). Consumers in a circular economy: Economic analysis of household waste sorting behaviour. Ecological Economics, 166, 106402. https://doi.org/10.1016/j.ecolecon.2019.106402
Nattassha, R., Handayati, Y., Simatupang, T. M., & Siallagan, M. (2020). Understanding circular economy implementation in the agri-food supply chain: the case of an Indonesian organic fertiliser producer. Agriculture & Food Security, 9(1). https://doi.org/10.1186/s40066-020-002648
Perdana, T., Renaldy, E., & Rahayu, F. (2018). Farmers' behavior on using fertilizer in West Java. AIP Conference Proceedings. https://doi.org/10.1063/1.5021204
Pervin, N., & Mokhtar, M. (2022). The Interpretivist Research Paradigm: a subjective notion of a social context. International Journal of Academic Research in Progressive Education and Development, 11(2). https://doi.org/10.6007/ijarped/v11-i2/12938
Phooi, C. L., Azman, E. A., Ismail, R., Shah, J. A., & Koay, E. S. R. (2022). Food waste behaviour and awareness of Malaysian. Scientifica, 2022, 1–11. https://doi.org/10.1155/2022/6729248
Rashid, M. I., & Shahzad, K. (2021). Food waste recycling for compost production and its economic and environmental assessment as circular economy indicators of solid waste management. Journal of Cleaner Production, 317, 128467. https://doi.org/10.1016/j.jclepro.2021.128467
Shafiee-Jood, M., & Cai, X. (2016). Reducing food loss and waste to enhance food security and environmental sustainability. Environmental Science & Technology, 50(16), 8432–8443. https://doi.org/10.1021/acs.est.6b01993
SWCorp. (2020). Pengurusan Sisa Pepejal (Modul 10). Retrieved from https://ikpkt.kpkt.gov.my/storpdf/nota_pusatpengajian/nota_sp2020/SLIDE_PENGURAN_SISA_PE PEJAL_MODUL_10_KURSUS_21_JUL2020.pdf
Van Doorn, J., & Verhoef, P. C. (2011). Willingness to pay for organic products: Differences between virtue and vice foods. International Journal of Research in Marketing, 28(3), 167–180. https://doi.org/10.1016/j.ijresmar.2011.02.005
Yang, M., Chen, L., Wang, J., Msigwa, G., Osman, A. I., Fawzy, S., Rooney, D., & Yap, P. (2022). Circular economy strategies for combating climate change and other environmental issues. Environmental Chemistry Letters, 21(1), 55–80. https://doi.org/10.1007/s10311-022-01499-6
Zander, K., Risius, A., Feucht, Y., Janssen, M., & Hamm, U. (2018). Sustainable aquaculture products: Implications of consumer awareness and of consumer preferences for promising market communication in Germany. Journal of Aquatic Food Product Technology, 27, 5–20. https://doi.org/10.1080/10498850.2017.1390028.
Zhou, Y., Zhou, Q., Gan, S., & Wang, L. (2018). Factors affecting farmers’ willingness to pay for adopting
vegetable residue compost in North China. Acta Ecologica Sinica, 38(6), 401-
https://doi.org/10.1016/j.chnaes.2018.04.001
Zondo, B. S., & Baiyegunhi, L. J. S. (2021). Determinants of willingness to pay (WTP) for organic fertiliser: A case of smallholder potato farmers in KwaZulu-Natal, South Africa. Journal of Agriculture and Rural Development in the Tropics and Subtropics, 122(2), 257–268. https://doi.org/10.17170/kobra-202110274963
.png){kind=logo}
.jpg)
