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Consumer Impact of Animal Welfare Regulation in the California Poultry Industry

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Author Info

  • Allender, William J.
  • Richards, Timothy J.

Abstract

This study examines the consumer welfare impact of animal welfare legislation mandating cage-free egg production in California. We estimate California egg consumers’ willingness to pay (WTP) for cage-free eggs using household-level purchase data and compare the implied premium to higher production costs when calculating the potential change in consumer surplus. Our findings suggest that larger households and/or households with limited means are most likely to be affected. Furthermore, the implied welfare loss for consumers is approximately $106 million. Although consumers value cage-free eggs, higher production costs result in a net welfare loss to consumers. One implication of this finding is that a clear labeling practice may be a more efficient way to motivate animal welfare and non-cage systems.

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File URL: http://purl.umn.edu/97856
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Bibliographic Info

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

Volume (Year): 35 (2010)
Issue (Month): 3 (December)
Pages:

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Handle: RePEc:ags:jlaare:97856

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

Keywords: animal welfare regulation; California poultry; egg prices; egg supply; hen housing; mixed logit; willingness to pay; Livestock Production/Industries;

References

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  1. Laura Mørch Andersen, 2010. "Animal Welfare and Eggs – Cheap Talk or Money on the Counter?," IFRO Working Paper 2010/6, University of Copenhagen, Department of Food and Resource Economics, revised Apr 2011.
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Cited by:
  1. Heng, Yan & Peterson, Hikaru Hanawa & Li, Xianghong, 2012. "Consumers’ Preferences for Shell Eggs Regarding Laying Hen Welfare," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124592, Agricultural and Applied Economics Association.

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