WILLINGNESS-TO-PAY FOR RBST-FREE MILK - A 2-LIMIT TOBIT-MODEL ANALYSIS

The labelling of dairy products containing milk from rBST-treated cows has rapidly emerged as an important issue in the US due to the contro versy between state and federal legislation and between consumer and i ndustrial groups. This paper evaluates consumer willingness to pay (WT P) for rBST-free milk using data collected from a consumer survey. Est imation results of a two-limit Tobit model suggest that a majority of consumers are willing to pay a premium for rBST-free milk and the WTP is affected by several sociodemographic factors such as income and att itudes toward the use of rBST.