Consumer acceptance and willingness to pay for olive oil with reduced pesticide use in the Euro-Mediterranean region: A reference-dependent contingent valuation approach

Abstract

While discussions on plant protection product regulations continue within the EU, insights into consumer behaviour regarding the reduction of pesticide use in olive oil production remain limited. This study explores consumers' willingness to pay (WTP) a premium for conventional extra virgin olive oil (EVOO) with 40 % reduced pesticide use across five Mediterranean EU countries. Employing the contingent valuation method—a stated preference experimental approach—with 'payment cards' based on past purchase records, we surveyed 5091 olive oil consumers in France, Greece, Italy, Portugal, and Spain using Qualtrics' consumer panels. To analyse the factors influencing both the decision to pay a premium and the premium amount, we applied the Heckman sample selection model, a statistical technique that addresses sample selection bias. The results reveal that 73 % of consumers are willing to pay a premium, with mean premiums ranging from 22 % in Italy to 26 % in France above the reference price for a 1-L bottle of conventional EVOO. Socio-demographic factors—such as age, income, education, and household size—shape the likelihood of paying a premium. Meanwhile, behavioural factors—including knowledge and perceptions of pesticide use—primarily determine the size of the premium. Consumers' age, household income, and previous purchase price also influence the premium amount, although the behavioural factors exert the strongest impact, notably in France, Greece, Portugal, and Spain. These findings offer actionable insights to support the sector's transition to sustainable pesticide use, aligning consumer preferences with the EU's Green Deal objective of halving pesticide use by 2030.