The urban–rural gap in the demand for food safety in China: The role of food label knowledge

Satoru Shimokawa, Dezhuang Hu, Dandan Li, Hong Cheng

Research output: Contribution to journalArticlepeer-review

Abstract

Despite the national promotion of food safety measures, a substantial urban–rural gap remains in the demand for food safety in China. To explain this gap, we explore the role of knowledge of food safety labels. We measure demand using the marginal willingness to pay (MWTP) for the green food label and the organic food label for rice and pork in urban and rural areas. We employ discrete choice experiments and the control function approach to control for potential endogeneity problems. The results show that the MWTP for the labels is significantly positive among people with label knowledge but insignificant or even negative among people without label knowledge, and the urban–rural gap in the MWTP is larger among the former than among the latter. These knowledge-related differences explain 8–29% of the urban–rural gap in the MWTP for the green food label. Our findings imply that improving knowledge about the green food label could potentially be effective in reducing the urban–rural gap, while our results also imply the existence of a future challenge for the government in promoting label knowledge more effectively in rural China.

Original languageEnglish
Pages (from-to)175-193
Number of pages19
JournalAgricultural Economics (United Kingdom)
Volume52
Issue number2
DOIs
Publication statusPublished - 2021 Mar

Keywords

  • China
  • food label
  • food quality
  • label knowledge
  • urban–rural gap

ASJC Scopus subject areas

  • Agronomy and Crop Science
  • Economics and Econometrics

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