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A Meta-Analysis of Geographical Indication Food Valuation Studies: What Drives the Premium for Origin-Based Labels?

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Author Info

  • Deselnicu, Oana C.
  • Costanigro, Marco
  • Souza-Monteiro, Diogo M.
  • McFadden, Dawn Thilmany

Abstract

We conduct a meta-analysis of studies estimating price premiums for agricultural products differentiated by Geographical Indication (GI). Models accounting for differences across product characteristics (food categories) and institutions (PDO, PGI, trademarks) explain a large portion of the variance in estimated premiums. Specifically, GIs capture the highest percentage premium in markets for products with short supply chains and relatively low added value (e.g., agricultural commodities). The premium is lower for wine and olive oil, where alternative means of product differentiation (e.g., branding) exist. Controlling for product characteristics, GIs adopting stricter regulations (PDO) yield larger premiums than less regulated ones (PGI).

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Bibliographic Info

Article provided by Western Agricultural Economics Association in its journal Journal of Agricultural and Resource Economics.

Volume (Year): 38 (2013)
Issue (Month): 2 (August)
Pages:

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Handle: RePEc:ags:jlaare:158285

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Web page: http://waeaonline.org/
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Related research

Keywords: food valuation; geographical indications (GI); meta-analysis; price premium; Protected Designations of Origin (PDO); Protected Geographical Indications (PGI); trademark; Crop Production/Industries; Food Consumption/Nutrition/Food Safety; Health Economics and Policy; International Relations/Trade;

References

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Cited by:
  1. Bontemps, Christophe & Bouamra-Mechemache, Zohra & Simioni, Michel, 2012. "Quality Labels and Firm Survival in the French Cheese Industry," TSE Working Papers 12-335, Toulouse School of Economics (TSE).

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