Economic techniques to estimate the demand for sustainable products: a case study for fair trade and organic coffee in the United Kingdom
AbstractThe hedonic approach is used in this paper to estimate how much is paid for the fair trade/organic characteristic of the coffee in the British market. This information is later combined with the Quantity Based Demand System (QBDS) model -developed by the authors- and the Almost Ideal Demand System (AIDS) (Deaton and Muellbauer, 1980) to completely determine the demand function for different coffees. The QBDS model is easier to handle and less data demanding than the AIDS model in this study. Resumen El presente artÃculo se basa en la utilizaciÃ³n del mÃ©todo hedÃ³nico para la estimaciÃ³n de la cantidad que se paga por la caracterÃstica de "OrgÃ¡nico/Comercio Justo" del cafÃ© en el mercado britÃ¡nico. La informaciÃ³n obtenida se combina despuÃ©s con el modelo Sistema de Demanda Basado en Cantidades (QBDS) - desarrollado por los autores- y el Sistema de Demanda Casi Ideal (AIDS) (Deaton and Muellbauer, 1980) para determinar por completo la funciÃ³n de demanda de los diferentes tipos de cafÃ©. El modelo QBDS es mÃ¡s sencillo en su utilizaciÃ³n y necesita de menos datos que el modelo AIDS. Palabras clave: sistemas de demanda, mÃ©todo hedÃ³nico, demanda de cafÃ©, etiquetado
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Spanish Association of Agricultural Economists in its journal Economia Agraria y Recursos Naturales.
Volume (Year): 04 (2004)
Issue (Month): 07 ()
demand systems; hedonic method; coffee demand; labelling; C13; C21; D12;
Find related papers by JEL classification:
- C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
- C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
- D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Palmquist, Raymond B, 1984. "Estimating the Demand for the Characteristics of Housing," The Review of Economics and Statistics, MIT Press, vol. 66(3), pages 394-404, August.
- Ibon Galarraga & Anil Markandya, 2003. "The analysis of welfare effects of an environmental product tax: an application to the taxation of car tyres in Hungary," Fiscal Studies, Institute for Fiscal Studies, vol. 24(1), pages 97-114, March.
- Stanley, Linda R & Tschirhart, John, 1991. "Hedonic Prices for a Nondurable Good: The Case of Breakfast Cereals," The Review of Economics and Statistics, MIT Press, vol. 73(3), pages 537-41, August.
- Nimon, R. Wesley & Beghin, John C., 1998.
"Are Eco-Labels Valuable? Evidence From The Apparel Industry,"
1998 Annual meeting, August 2-5, Salt Lake City, UT
21016, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
- Wesley Nimon & John Beghin, 1999. "Are Eco-Labels Valuable? Evidence From the Apparel Industry," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 81(4), pages 801-811.
- Nimon, W. & Beghin, John C., 2008. "Are Eco-Labels Valuable? Evidence from the Apparel Industry," Staff General Research Papers 12741, Iowa State University, Department of Economics.
- Wesley Nimon & John C. Beghin, 1998. "Are Eco-Labels Valuable? Evidence from the Apparel Industry," Center for Agricultural and Rural Development (CARD) Publications 99-wp213, Center for Agricultural and Rural Development (CARD) at Iowa State University.
- Nimon, Wesley & Beghin, John C., 1999. "Are Eco-Labels Valuable? Evidence from the Apparel Industry," Staff General Research Papers 1514, Iowa State University, Department of Economics.
- Combris, Pierre & Lecocq, Sebastien & Visser, Michael, 1997. "Estimation for a Hedonic Price Equation for Bordeaux Wine: Does Quality Matter?," Economic Journal, Royal Economic Society, vol. 107(441), pages 390-402, March.
- Pierani, P & Rizzi, P L, 1991. "An Econometric Analysis of the Olive Oil Market in Italy," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 18(1), pages 37-60.
- Jeffrey R. Blend & Eileen O. van Ravenswaay, 1999. "Measuring Consumer Demand for Ecolabeled Apples," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 81(5), pages 1072-1077.
- Nerlove, Marc, 1995. "Hedonic price functions and the measurement of preferences: The case of Swedish wine consumers," European Economic Review, Elsevier, vol. 39(9), pages 1697-1716, December.
- J. A. Molina, 1994. "Food Demand In Spain: An Application Of The Almost Ideal System," Journal of Agricultural Economics, Wiley Blackwell, vol. 45(2), pages 252-258.
- Cropper, Maureen L & Deck, Leland B & McConnell, Kenneth E, 1988. "On the Choice of Functional Form for Hedonic Price Functions," The Review of Economics and Statistics, MIT Press, vol. 70(4), pages 668-75, November.
- P. Y. Chen & M. M. Veeman, 1991. "An Almost Ideal Demand System Analysis for Meats with Habit Formation and Structural Change," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 39(2), pages 223-235, 07.
- Anderson, Gordon & Blundell, Richard, 1983. "Testing Restrictions in a Flexible Dynamic Demand System: An Application to Consumers' Expenditure in Canada," Review of Economic Studies, Wiley Blackwell, vol. 50(3), pages 397-410, July.
- Freeman, A Myrick, III, 1979. " Hedonic Prices, Property Values and Measuring Environmental Benefits: A Survey of the Issues," Scandinavian Journal of Economics, Wiley Blackwell, vol. 81(2), pages 154-73.
- Schollenberg, Linda, 2011. "So how much do you pay for ethical consumption? Estimating the hedonic price for Fair Trade coffee in Sweden," HUI Working Papers 31, HUI Research.
- Aditi Sengupta, 2010. "Signaling environmental quality to green consumers and the incentive to invest in cleaner technology: Effect of environmental regulation," Departmental Working Papers 1001, Southern Methodist University, Department of Economics.
- Sengupta, Aditi, 2012.
"Investment in cleaner technology and signaling distortions in a market with green consumers,"
Journal of Environmental Economics and Management,
Elsevier, vol. 64(3), pages 468-480.
- Aditi Sengupta, 2011. "Investment in Cleaner Technology and Signaling Distortions in a Market with Green Consumers," Auburn Economics Working Paper Series auwp2011-10, Department of Economics, Auburn University.
- Ibon Galarraga & David Heres Del Valle & Mikel González-Eguino, 2011. "Price Premium for High-Efficiency Refrigerators and Calculation of Price-Elasticities for Close-Substitutes: Combining Hedonic Pricing and Demand Systems," Working Papers 2011-07, BC3.
- Yang, Shang-Ho & Hu, Wuyang & Mupandawana, Malvern & Liu, Yun, 2012. "Consumer Willingness to Pay for Fair Trade Coffee: A Chinese Case Study," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 44(01), February.
- Rommel Salvador & Altaf Merchant & Elizabeth Alexander, 2014. "Faith and Fair Trade: The Moderating Role of Contextual Religious Salience," Journal of Business Ethics, Springer, vol. 121(3), pages 353-371, May.
- Veronika Andorfer & Ulf Liebe, 2012. "Research on Fair Trade Consumption—A Review," Journal of Business Ethics, Springer, vol. 106(4), pages 415-435, April.
- Galarraga, Ibon & Markandya, Anil, 2006. "A proposal to correct external effects in the coffee market: a tax on regular coffee and tea to subsidise the fair trade coffee," Economia Agraria y Recursos Naturales, Spanish Association of Agricultural Economists, vol. 6(12).
- Yang, Shang-Ho & Hu, Wuyang, 2011. "Using a Modified Payment Card Survey on Chinese Consumers’ Willingness to Pay for Fair Trade Coffee: Would the Starting Point Matter," 2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania 103720, Agricultural and Applied Economics Association.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.