Consumer Evaluation of Organic, Local, and Controlled‐Environment Grown Lettuce: Evidence From an Experimental Auction in Two Study Sites

ABSTRACT In recent years, controlled‐environment agriculture (CEA) has been expanding rapidly in the United States. Whereas estimates of production costs and environmental performance of CEA production systems exist in the literature, information on consumer valuation of CEA‐grown produce is limited. This paper examines consumer willingness to pay (WTP) for CEA‐grown green leaf lettuce and lettuce with other attributes (local and organic), as well as the impact of the environmental performance information of these products on consumer WTP. We conducted an experimental laboratory auction in two study sites and found that consumers are largely indifferent between CEA‐grown and field‐grown lettuce but are willing to pay a price premium for local and organic lettuce. Our results on the effect of environmental performance information indicate that this information significantly influences consumer WTP for all evaluated lettuce, albeit in different directions. The environmental performance information increases consumer WTP for lettuce produced locally and decreases WTP for CEA‐grown and organic lettuce. These findings provide important insights for policymakers and marketers and allow us to make inferences about consumer knowledge and awareness about CEA‐grown, local and organic produce.