Food loss is a significant global issue, with Japan experiencing substantial waste. The Japanese government aims to reduce food loss, particularly in households, where a significant portion results from discarding edible parts of vegetables. Japanese consumers often prioritize the appearance of vegetables, leading to substantial waste even before reaching the market. This study aims to explore whether providing information about pesticide use influences consumers' preferences and their WTP for pesticide-free vegetables, regardless of their appearance. The scarcity of readily available pesticide-free vegetables in Japan necessitates the cultivation of such produce for this study, making it unique in assessing consumer behavior based on actual pesticide-free, albeit aesthetically imperfect, produce. Understanding consumer preferences is crucial for reducing food loss and encouraging sustainable agricultural practices.

Existing literature highlights the relationship between vegetable appearance and pesticide use, but lacks an economic perspective. Several studies analyze WTP for organic foods, focusing on organic labels and consumer attributes. Research in developing countries shows high WTP for organic and pesticide-free produce, influenced by factors like age, income, and health concerns. Studies in developed countries, including the US, show substantial premiums for pesticide-free produce, although organic certification doesn't always command a premium. In Japan, few studies compare organic and conventional vegetable values economically, primarily focusing on consumer preference for organic produce. Existing research reveals a gap in understanding Japanese consumers' WTP for pesticide-free vegetables independent of appearance and the influence of environmental awareness on purchasing behavior.

A pre-survey in Sapporo, Japan, helped determine initial bid prices for cucumbers and cherry tomatoes in a double-bounded dichotomous choice (DBDC) contingent valuation survey conducted at four supermarkets. Pesticide-free vegetables were cultivated using compost from food waste, avoiding chemical fertilizers and pesticides. The survey involved explaining conventional and pesticide-free cultivation methods to 400 shoppers, showing pesticide-free vegetables at two stores. The DBDC method offered respondents a sequence of bids, determining their WTP. Data analysis involved a log-likelihood function to estimate WTP, considering variables like age, gender, income, whether pesticide-free vegetables were shown, and concern for environmental issues.

The study involved 342 valid responses. Analysis revealed that age significantly impacts WTP (positive correlation), while gender and income were insignificant. Crucially, showing the pesticide-free vegetables (with inferior appearance) did not affect WTP. Consumers prioritized the absence of pesticides over visual appeal. Concern about environmental issues also positively affected WTP. Estimated WTP was 227 yen for cucumbers and 270 yen for cherry tomatoes—26% and 29% higher than conventional prices, respectively. These premiums are lower than the 50% increase often observed for organic vegetables in previous studies. The findings contradict the common assumption that appearance is paramount for Japanese consumers when selecting vegetables.

The study's key finding, the insignificance of appearance in WTP for pesticide-free vegetables, challenges the prevailing notion of strong aesthetic preference among Japanese consumers. The results suggest a potential market expansion for pesticide-free produce, potentially mitigating food loss from discarding aesthetically imperfect but safe vegetables. The positive relationship between environmental awareness and WTP indicates that raising public consciousness about pesticide use and its impact could stimulate demand for pesticide-free options. The relatively modest premiums compared to conventional prices show the importance of cost reduction strategies to make this market more accessible.

This study demonstrates that Japanese consumers prioritize pesticide absence over the appearance of vegetables. Increased environmental awareness boosts WTP. This suggests potential for pesticide-free vegetable market growth, reducing food waste. Future research should employ a nationally representative sample and investigate methods to reduce production costs and address potential hypothetical bias.

The sample may not be fully representative of the Japanese population, focusing on older individuals from Sapporo. The hypothetical nature of the WTP elicitation might lead to overestimation. The study’s focus on two vegetables might not generalize to all produce. Future research needs a larger, nationally representative sample and explore non-hypothetical methods for WTP assessment.