Consumers’ Preferences and Willingness to Pay for Organic Vegetables in Islamabad, Pakistan

The paper analyses the factor that Influence the willingness to pay a high price for organic vegetables by using consumer preferences data by primary sources from Islamabad in Pakistan. The determinants of willingness to pay of consumers estimated by using the probit model. The model contains the information of socioeconomic characteristics, awareness and preferences of organic vegetables and product attributes. The empirical findings indicate that age, employment status, income, education, number of children, taste, no chemical residual, high nutritional value, freshness and colour of the vegetables have positive effects on consumer to pay a high price. While in case of product size and shape has a adverse effect on consumer. Results indicate that when making choices of food, consumers in Islamabad prioritise their health. Furthermore, the households who earn more income perceive a negative impact on health from chemical usage, the more likely they would be willing to pay a high price for a fresh organic vegetable.