2017 ASHS Annual Conference

Aquaponics is a closed-loop system that integrates both hydroponic plant production and aquaculture fish production. Many key questions about the overall economic viability of aquaponic systems remain unanswered. Of particular interest for potential producers is consumer willingness to pay for aquaponic produce and fish. This study reports results and analysis from an experimental economic auction to measure consumer willingness to pay for aquaponically-grown lettuce compared with soil-grown. The experiment was conducted on December 3^rd and December 10^th, 2016, with four session each day and a total of 90 participants.

The study used a standard sealed-bid second-price “Vickery” auction to solicit bids from participants on 9 different samples of lettuce (Lactuca sativa) two times: once without knowledge of how the lettuces were grown and once after they learned how the lettuces were grown (either aquaponically or in soil). The Vickery-style auction is designed so that it is in participant’s best interest to bid their true value. During the first round of bidding, participants were simultaneously able to taste samples of each lettuce, view full heads of the lettuces, and fill out a series of sensory evaluations. After the second round of bidding, participants filled out surveys collecting demographic and attitudinal information.

Experimental data was analyzed using ordinary least squares (OLS) regression for panel data. The primary variable of interest was the interaction term between binary variables for Round and Aquaponic. The coefficient on this variable represents the effect of participants’ learning the production method of all samples on bids for the aquaponically-grown lettuce. This parameter was found to be small in magnitude and not statistically significant, indicating that on average, participants did not significantly change their bids for aquaponically-grown lettuces upon learning about production method. This result has implications for potential aquaponic producers who might require a price premium on products for the enterprise to be financially viable.

Other significant results (90% confidence or greater) include that on average for all lettuces, increased frequency of shopping increased bids, increased education increased bids, being married and the presence of children under 12 in the household decreased bids, and males tend to have higher bids than females. Higher positive rating for the attributes of appearance, flavor, crispness, and texture all increased bids, and perhaps surprisingly, membership in an environmental group decreased bids. Out of three varieties, one (Rex) received significantly higher bids than the other two.