Abstract
Consumers are more conscious for their health; as a result, demand of organic vegetables has been increasing. The objective of this study was to assess factors affecting the willingness to pay (WTP) for premium price for organic vegetables in Nepal. A sample of 720 respondents, surveyed at four markets in Nepal, analysed by descriptive statistics and Probit model under Dichotomous Choice Contingent Valuation Method. Overall, the average premium price that consumers were willing to pay for organic vegetables in country was 26.4%. Age, education, and knowledge-related variables were important determinants at lower premium price while affordability factors such as income, expense on vegetable, marital status, and family size appear to be important determinants of WTP at high premium price for organic vegetables. Income was strongly significant and positively influencing WTP at 30% or higher premium levels. Family size was significant and negatively associated to WTP at all levels of premium price. The result suggests to invent cost-saving policy at producer level for reducing the requirement of high premium price.
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