Abstract

This paper studies the consumer's consciousness structures on recently introduced agri-environmental payment programs in Shiga, using structural equation modeling (SEM) which includes WTP (Willingness to Pay). Agri-environmental payment programs in Shiga offers financial compensation to farm workers who reduce farm chemicals and chemical fertilizer more than 50% compared with current practice. The purpose of this paper is to clarify an effective way to ensure agreement consumers. To the end, mail survey was conducted in August 2003 where 4 types of CVM questionnaires were mailed to 2, 000 households in Shiga. The only differences between these questionnaires were questions on price. The overall response rate was 45.8%.At first, the theoretical model of SEM, and the WTP calculation model (Cameron and Quiggin, 1994) which was used as a indicator were described. After examination of WTP's validity, I drew up a hypothesis and general idea for a structural equation model which indicated cause and effect relations as“knowledge”→“consciousness”→“behavior (WTP) ”. Then, SEM was conducted using five latent variables named “Knowledge about Agriculture and Environment”, “Environmental Consciousness”, “Food Safety Consciousness”, “Weakness for High-Quality Goods”and“Evaluation for the policy”. In a framework of CVM studies' questionnaire, this kind of analysis is rarely used.The main findings were: (1) there are positive relations of cause and effect between agri-environmental knowledge and consciousness. (2) There are positive relations of cause and effect between environmental consciousness, weakness for high-quality goods and Consumers' Evaluation for the policy. (3) There are negative relations of cause and effect between food safety consciousness and Consumers' Evaluation for the policy. Only the findings of (3) are not suitable for the hypotheses. For the reasons of (3), it is conjectured that people who have high consciousness about food safety are wondering if farm chemicals and chemical fertilizer are really reducing, and that safety foods are supplied sufficiently. The other reason is that people are not satisfied with current reduction levels of farm chemicals and chemical fertilizer. The authorities can be coped with the former one by measures supposed to be done. However, for the latter one, none of the measures can be cope with. Consequently, it is suggested that another solution is needed for people with high consciousness about food safety.

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