Consumer Willingness to Pay for Regenerative Agriculture Practices: An Empirical Study in Dakshina Kannada

Abstract

As consumer consciousness soars and concerns about environmental degradation deepen, regenerative agriculture emerges as a beacon of hope. This study investigates the potential of this transformative approach in Dakshina Kannada District, India, focusing on consumer willingness to pay (WTP) and market impacts. We aimed to assess consumer interest in regenerative products, identify potential drivers of WTP beyond general environmental concerns, and evaluate the economic feasibility for farmers in the region. We employed a quantitative survey of 100 Dakshina Kannada District residents, encompassing questions on product preferences, WTP for regeneratively produced food, and underlying motivations. Statistical analysis, including regressions, explored the determinants of WTP and its variation across demographics and product categories. A remarkable 87% of respondents indicated WTP more for regeneratively grown products, particularly coffee, fruits, and vegetables. However, general environmental concerns lacked explanatory power in predicting WTP. Our analysis suggests alternative drivers, such as trust in producers, specific environmental benefits, and product certifications, warrant further investigation. Farmers face a promising market for regeneratively produced goods. Focusing on high-demand crops, highlighting specific environmental advantages, and building trust with consumers can unlock premium pricing and economic gains. Policymakers must tailor interventions and policies to address the unique motivations of Dakshina Kannada consumers, including supporting infrastructure development, raising awareness, and establishing robust certification standards.