Market-Based Instruments for the Conservation of Underutilized Crops: In-Store Experimental Auction of Native Chili Products in Bolivia

Jaqueline Garcia-Yi

doi:10.3390/su6117768

Abstract

Native chilies (Capsicum spp.) are currently underutilized in Bolivia, one of this crop’s centers of diversity. Fewer local farmers cultivate native chilies annually due to low market demand. Increasing its private use value can lead to the in-situ conservation of this crop. The objective of the paper is to evaluate the market acceptability of three native chili products: (a) chili marmalade; (b) chili cooking paste; and (c) pickled chilies. Multi-product Becker-DeGroot-Marschak experimental auctions and hedonic tests were conducted with 337 participants in La Paz and Santa Cruz. Data were analyzed using seemingly unrelated regressions. Results suggest that consumers are willing to pay price premiums of about 25–50 percent. Biodiversity conservation and improvements in farmers’ quality of life statements would not have influence on first purchase decisions but rather on repurchase decisions and therefore on consumers’ product loyalty. This in turn could lead to sustainable agro-biodiversity conservation, centered on consumers’ purchase of these products over time.

Highlights

Several native chilies are currently underutilized and many are at the risk of extinction in Bolivia [1], one of the countries, which is considered a center of biodiversity for this crop [2]
The sensory characteristics were only included as explanatory variables in Treatment B, and not in Treatment A
The results suggest that age significantly influences the willingness to pay (WTP) only for “first purchase” (Treatment A), while gender is significant when it comes to both first purchase and repurchase decisions

Summary

Introduction

Several native chilies are currently underutilized and many are at the risk of extinction in Bolivia [1], one of the countries, which is considered a center of biodiversity for this crop [2]. Sustainability 2014, 6 are defined as local and traditional crops widely grown in the past but today falling into disuse; whose distribution, cultivation and uses are poorly documented; and have received little attention from policy and decision makers [3,4]. Agro-biodiversity loss is a problem of inadequate economic incentives for farmers [5]. Native crops are often well adapted to marginal and heterogeneous environments and resistant to local pests and diseases. Large-scale agro-biodiversity loss could translate into lower and unsustainable crop yields, and in turn, to local (or national-level) economic and social shocks over time [8]

Objectives

Methods

Results

Conclusion