IDEAS home Printed from https://ideas.repec.org/a/ags/jlaare/158285.html
   My bibliography  Save this article

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

Author

Listed:
  • 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).

Suggested Citation

  • Deselnicu, Oana C. & Costanigro, Marco & Souza-Monteiro, Diogo M. & McFadden, Dawn Thilmany, 2013. "A Meta-Analysis of Geographical Indication Food Valuation Studies: What Drives the Premium for Origin-Based Labels?," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 38(2), pages 1-16, August.
    • Handle: RePEc:ags:jlaare:158285
    DOI: 10.22004/ag.econ.158285
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/158285/files/JARE_Aug2013__5_Deselnicu_p204.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.158285?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Daniel Pick, 2008. "Geographical Indications and the Competitive Provision of Quality in Agricultural Markets," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 90(3), pages 794-812.
    2. Héla Hadj Ali & Céline Nauges, 2007. "The Pricing of Experience Goods: The Example of en primeur Wine," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 89(1), pages 91-103.
    3. Marco Costanigro & Jill J. McCluskey & Christopher Goemans, 2010. "The Economics of Nested Names: Name Specificity, Reputations, and Price Premia," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 92(5), pages 1339-1350.
    4. Marco Costanigro & Craig A. Bond & Jill J. McCluskey, 2012. "Reputation Leaders, Quality Laggards: Incentive Structure in Markets with Both Private and Collective Reputations," Journal of Agricultural Economics, Wiley Blackwell, vol. 63(2), pages 245-264, June.
    5. Groot, Etienne & Albisu, Luis Miguel, 2009. "MaxDiff approaches for PDO “Calanda” peaches (Spain)," 113th Seminar, September 3-6, 2009, Chania, Crete, Greece 58022, European Association of Agricultural Economists.
    6. Craig A. Gallet & John A. List, 2003. "Cigarette demand: a meta‐analysis of elasticities," Health Economics, John Wiley & Sons, Ltd., vol. 12(10), pages 821-835, October.
    7. Luisa Menapace & GianCarlo Moschini, 2012. "Quality certification by geographical indications, trademarks and firm reputation," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 39(4), pages 539-566, September.
    8. Luisa Menapace & Gregory Colson & Carola Grebitus & Maria Facendola, 2011. "Consumers' preferences for geographical origin labels: evidence from the Canadian olive oil market," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 38(2), pages 193-212, June.
    9. Daniel Hassan & Sylvette Monier-Dilhan, 2006. "National brands and store brands: Competition through public quality labels," Agribusiness, John Wiley & Sons, Ltd., vol. 22(1), pages 21-30.
    10. Edward Oczkowski, 1994. "A Hedonic Price Function For Australian Premium Table Wine," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 38(1), pages 93-110, April.
    11. Galli, Francesca & Carbone, Anna & Caswell, Julie A. & Sorrentino, Alessandro, 2011. "A Multi-Criteria Approach to Assessing PDOs/PGIs: An Italian Pilot Study," International Journal on Food System Dynamics, International Center for Management, Communication, and Research, vol. 2(3), pages 1-18, December.
    12. Jason A. Winfree & Jill J. McCluskey, 2005. "Collective Reputation and Quality," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 87(1), pages 206-213.
    13. James Murphy & P. Allen & Thomas Stevens & Darryl Weatherhead, 2005. "A Meta-analysis of Hypothetical Bias in Stated Preference Valuation," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 30(3), pages 313-325, March.
    14. Günter Schamel, 2006. "Geography versus brands in a global wine market," Agribusiness, John Wiley & Sons, Ltd., vol. 22(3), pages 363-374.
    15. Carl Shapiro, 1983. "Premiums for High Quality Products as Returns to Reputations," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 98(4), pages 659-679.
    16. Carl Johan Lagerkvist & Sebastian Hess, 2011. "A meta-analysis of consumer willingness to pay for farm animal welfare," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 38(1), pages 55-78, March.
    17. Marco Costanigro & Ron C. Mittelhammer & Jill J. McCluskey, 2009. "Estimating class-specific parametric models under class uncertainty: local polynomial regression clustering in an hedonic analysis of wine markets," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 24(7), pages 1117-1135.
    18. Santos, J. Freitas & Ribeiro, J. Cadima, 2005. "Product Attribute Saliency and Region of Origin: Some Empirical Evidence from Portugal," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24667, European Association of Agricultural Economists.
    19. Kwamena K. Quagrainie & Jill J. McCluskey & Maria L. Loureiro, 2003. "A Latent Structure Approach to Measuring Reputation," Southern Economic Journal, John Wiley & Sons, vol. 69(4), pages 966-977, April.
    20. Riccardo Scarpa & George Philippidis & Fiorenza Spalatro, 2005. "Product-country images and preference heterogeneity for Mediterranean food products: A discrete choice framework," Agribusiness, John Wiley & Sons, Ltd., vol. 21(3), pages 329-349.
    21. Lusk, Jayson L. & Roosen, Jutta & Shogren, Jason (ed.), 2011. "The Oxford Handbook of the Economics of Food Consumption and Policy," OUP Catalogue, Oxford University Press, number 9780199569441.
    22. 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.
    23. Akaichi, Faiçal & Gil, Jose Maria, 2008. "Factors Explaining the Consumers' Willingness-to-Pay for a "Typical" Food Product in Spain: Evidence from Experimental Auctions," 2009 Conference, August 16-22, 2009, Beijing, China 50107, International Association of Agricultural Economists.
    24. Teuber, Ramona, 2007. "Geographical Indications of Origin as a Tool of Product Differentiation : The Case of Coffee," Discussion Papers 33, Justus Liebig University Giessen, Center for international Development and Environmental Research (ZEU).
    25. T. D. Stanley, 2001. "Wheat from Chaff: Meta-analysis as Quantitative Literature Review," Journal of Economic Perspectives, American Economic Association, vol. 15(3), pages 131-150, Summer.
    26. Günter Schamel & Kym Anderson, 2019. "Wine Quality and Varietal, Regional and Winery Reputations: Hedonic Prices for Australia and New Zealand," World Scientific Book Chapters, in: Kym Anderson (ed.), The International Economics of Wine, chapter 10, pages 225-253, World Scientific Publishing Co. Pte. Ltd..
    27. Craig A. Gallet, 2007. "The demand for alcohol: a meta-analysis of elasticities," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 51(2), pages 121-135, June.
    28. Ehmke, Mariah D., 2006. "International Differences in Consumer Preferences for Food Country-of-Origin: A Meta-Analysis," 2006 Annual meeting, July 23-26, Long Beach, CA 21193, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    29. Céline Bonnet, 2001. "Assessing consumer response to Protected Designation of Origin labelling: a mixed multinomial logit approach," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 28(4), pages 433-450, December.
    30. Richardson, Leslie & Loomis, John, 2009. "The total economic value of threatened, endangered and rare species: An updated meta-analysis," Ecological Economics, Elsevier, vol. 68(5), pages 1535-1548, March.
    31. Nadhem Mtimet & Luis Miguel Albisu, 2006. "Spanish wine consumer behavior: A choice experiment approach," Agribusiness, John Wiley & Sons, Ltd., vol. 22(3), pages 343-362.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Caracciolo, Francesco & D’Amico, Mario & Di Vita, Giuseppe & Pomarici, Eugenio & Dal Bianco, Andrea & Cembalo, Luigi, 2016. "Private vs. Collective Wine Reputation," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 19(3), pages 1-20, August.
    2. Jianyu Yu & Zohra Bouamra-Mechemache & Angelo Zago, 2018. "What is in a Name? Information, Heterogeneity, and Quality in a Theory of Nested Names," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 100(1), pages 286-310.
    3. Pecchioli, Bruno & Moroz, David, 2023. "Do geographical appellations provide useful quality signals? The case of Scotch single malt whiskies," Economic Modelling, Elsevier, vol. 124(C).
    4. Zhanguo Zhu & Qinyuan Shen & Zhifeng Gao, 2022. "Consumer choices in agricultural markets with multitier collective labels and private brands," Agribusiness, John Wiley & Sons, Ltd., vol. 38(4), pages 905-922, October.
    5. Susana López‐Bayón & Marta Fernández‐Barcala & Manuel González‐Díaz, 2020. "In search of agri‐food quality for wine: Is it enough to join a geographical indication?," Agribusiness, John Wiley & Sons, Ltd., vol. 36(4), pages 568-590, October.
    6. Teuber, Ramona & Herrmann, Roland, 2012. "Towards a differentiated modeling of origin effects in hedonic analysis: An application to auction prices of specialty coffee," Food Policy, Elsevier, vol. 37(6), pages 732-740.
    7. Ernesto Tavoletti, 2018. "Un?alternativa alla retorica della dimensione aziendale e degli IDE: sistemi agro-alimentari sostenibili di PMI ed internazionalizzazione endogena per mezzo delle indicazioni geografiche," AGRICOLTURA ISTITUZIONI MERCATI, FrancoAngeli Editore, vol. 2018(2), pages 27-42.
    8. Edward Oczkowski, 2016. "Analysing Firm-level Price Effects for Differentiated Products: The Case of Australian Wine Producers," Australian Economic Papers, Wiley Blackwell, vol. 55(1), pages 43-62, March.
    9. Saens, Rodrigo & Berríos, Rodrigo, 2012. "The country brand trap," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), April.
    10. Costanigro, Marco & Scozzafava, Gabriele & Casini, Leonardo, 2019. "Vertical differentiation via multi-tier geographical indications and the consumer perception of quality: The case of Chianti wines," Food Policy, Elsevier, vol. 83(C), pages 246-259.
    11. Garavaglia, Christian & Mariani, Paolo, 2015. "How Much Do Consumers Value PDO Certifications? Estimates of WTP for PDO Dry-Cured Ham in Italy," 145th Seminar, April 14-15, 2015, Parma, Italy 200376, European Association of Agricultural Economists.
    12. Vincent Hoang & Takao Iida & Shigeru Matsumoto & Natsuki Watanabe & Clevo Wilson, 2014. "Market penetration of imported agricultural products: A hedonic analysis of the Japanese table wine market," Working Papers e083, Tokyo Center for Economic Research.
    13. M’hand Fares & Saqlain Raza & Alban Thomas, 2018. "Is There Complementarity Between Certified Labels and Brands? Evidence from Small French Cooperatives," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 53(2), pages 367-395, September.
    14. Vincent Hoang & Takao Iida & Shigeru Matsumoto & Natsuki Watanabe & Clevo Wilson, 2016. "Consumer’s comparison between local and imported organic products: a hedonic analysis of the Japanese table wine market," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 6(3), pages 405-415, December.
    15. Irz, Xavier & Mazzocchi, Mario & Réquillart, Vincent & Soler, Louis-Georges, 2015. "Research in Food Economics: past trends and new challenges," Revue d'Etudes en Agriculture et Environnement, Editions NecPlus, vol. 96(01), pages 187-237, March.
    16. Bonanno, Alessandro & Bimbo, Francesco & Costanigro, Marco & VIscecchia, Rosaria, 2018. "Do Geographic Indication Labels Pay off? Estimating GI’s implicit Price Dispersion in the Italian EVOO Market," 2018 Annual Meeting, August 5-7, Washington, D.C. 274203, Agricultural and Applied Economics Association.
    17. Resano, Helena & Sanjuán, Ana I. & Albisu, Luis M., 2012. "Consumers’ response to the EU Quality policy allowing for heterogeneous preferences," Food Policy, Elsevier, vol. 37(4), pages 355-365.
    18. Christian Garavaglia & Paolo Mariani, 2017. "How Much Do Consumers Value Protected Designation of Origin Certifications? Estimates of willingness to Pay for PDO Dry‐Cured Ham in Italy," Agribusiness, John Wiley & Sons, Ltd., vol. 33(3), pages 403-423, June.
    19. Costanigro, Marco & Scozzafava, Gabriele & Casini, Leonardo, 2017. "Vertical Differentiation, Perceptions Restructuring, And Wine Choices: The Case Of The Gran Selezione In Chianti Wines," Working Papers 253850, American Association of Wine Economists.
    20. Fares, M’hand & Raza, Saqlain & Thomas, Alban, 2018. "Is there complementarity between labels and brands? Evidence from small French co-operatives," TSE Working Papers 18-895, Toulouse School of Economics (TSE).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:jlaare:158285. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/waeaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.