Using a Discrete Choice Experiment to Elicit Consumers’ WTP for Health Risk Reductions Achieved By Nanotechnology in the UK

We present research findings on consumers’ willingness to pay (WTP) for reductions in the level offoodborne health risks. The research addresses how such valuations are affected by the means of whichthe risk reduction is delivered and the methods of risk presentations used in choice tasks. In this case, theresearch has two treatments. In the first treatment, the comparison is between risk reductions achieved byan improvement in the food system in general (e.g., more stringent regulations and inspection regimes)within the slaughter and meat processing stages of the food chain, as opposed to a risk reduction achievedvia innovations in food packaging using nanotechnology, which is the use of nanosensors in packaging. Ifthere is a contamination in packaging, nanosensors reveal a colour change on the packaging material. Inthe second treatment, the comparison is between valuations of risk reductions in which reductions in risksare presented via absolute values and grids and absolute values together. Both comparisons are achievedvia split sample Discrete Choice Experiment surveys. The difference between consumers’ valuations offoodborne risk reductions provides an implicit value for nanotechnology (i.e., WTP to avoid) and theeffect of risk grids on choices people make. General results show the existence of heterogeneity in Britishconsumers’ preferences. The effects of nanosensors and risk grids on consumers’ choices are not strongacross the models. The valuations of health risk reductions show some variations across the models inboth treatment groups.