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Abstract

Many consumers are concerned with animal welfare in the conventional production of farm livestock. This concern can be related both to their own and others’ consumption. In the latter case, there is a negative externality from consumption. We suggest a survey design that enables us to test for a market failure in farm livestock production. Applying this to the question of battery cages in egg production, we cannot show that a market failure exists. The policy can be extended to general discussion of how potential market failures for all kind of farm livestock should be managed.

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File URL: http://purl.umn.edu/6687
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Bibliographic Info

Article provided by Southern Agricultural Economics Association in its journal Journal of Agricultural and Applied Economics.

Volume (Year): 39 (2007)
Issue (Month): 01 (April)
Pages:

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Handle: RePEc:ags:joaaec:6687

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Web page: http://www.saea.org/jaae/jaae.htm
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Related research

Keywords: animal welfare; choice experiments; market failure; Livestock Production/Industries; Marketing; D12; Q13; Q18;

Other versions of this item:

Find related papers by JEL classification:

• D62 - Microeconomics - - Welfare Economics - - - Externalities
• Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
• Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy

References

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1. David Revelt & Kenneth Train, 1998. "Mixed Logit With Repeated Choices: Households' Choices Of Appliance Efficiency Level," The Review of Economics and Statistics, MIT Press, vol. 80(4), pages 647-657, November.
2. Richard Bennett & Douglas Larson, 1996. "Contingent Valuation Of The Perceived Benefits Of Farm Animal Welfare Legislation: An Exploratory Survey," Journal of Agricultural Economics, Wiley Blackwell, vol. 47(1-4), pages 224-235.
3. Bennett, R. M., 1997. "Farm animal welfare and food policy," Food Policy, Elsevier, vol. 22(4), pages 281-288, August.
4. Richard Bennett, 1995. "The Value Of Farm Animal Welfare," Journal of Agricultural Economics, Wiley Blackwell, vol. 46(1), pages 46-60.
5. Jensen, Helen H. & Yen, Steven & Wang, Qingbin, 1996. "Cholesterol Information and Egg Consumption in the U.S.: A Nonnormal and Heteroscedastic Double Hurdle Model," Staff General Research Papers 1056, Iowa State University, Department of Economics.
   
   • Yen, Steven T & Jensen, Helen H & Wang, Qingbin, 1996. "Cholesterol Information and Egg Consumption in the US: A Nonnormal and Hetroscedastic Double-Hurdle Model," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 23(3), pages 343-56.
6. Daniel McFadden & Kenneth Train, 2000. "Mixed MNL models for discrete response," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 15(5), pages 447-470.
7. Kenneth E. Train, 1998. "Recreation Demand Models with Taste Differences over People," Land Economics, University of Wisconsin Press, vol. 74(2), pages 230-239.
8. Jayson Lusk & T Schroeder, 2004. "Are choice experiments incentive compatible? A test with quality differentiated beef steaks," Artefactual Field Experiments 00096, The Field Experiments Website.
   
   • Jayson L. Lusk & Ted C. Schroeder, 2004. "Are Choice Experiments Incentive Compatible? A Test with Quality Differentiated Beef Steaks," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(2), pages 467-482.
9. Alpizar, Francisco & Carlsson, Fredrik & Martinsson, Peter, 2001. "Using Choice Experiments for Non-Market Valuation," Working Papers in Economics 52, University of Gothenburg, Department of Economics.
   
   • F Alpizar & F Carlsson & P Martinsson, 2003. "Using Choice Experiments for Non-Market Valuation," Economic Issues Journal Articles, Economic Issues, vol. 8(1), pages 83-110, March.
   • Peter Martinsson, 2002. "Using Choice Experiments for Non-Market Valuation," EEPSEA Special and Technical Paper sp200205t2, Economy and Environment Program for Southeast Asia (EEPSEA), revised May 2002.
10. repec:feb:artefa:0067 is not listed on IDEAS
11. Kenneth Train, 2003. "Discrete Choice Methods with Simulation," Online economics textbooks, SUNY-Oswego, Department of Economics, number emetr2.
    
    • Train,Kenneth E., 2009. "Discrete Choice Methods with Simulation," Cambridge Books, Cambridge University Press, number 9780521766555.
    • Train,Kenneth E., 2009. "Discrete Choice Methods with Simulation," Cambridge Books, Cambridge University Press, number 9780521747387.
12. Brunstad, R.J. & Gaasland, I. & Vardal, E., 1999. "Agricultural Production and the Optimal Level of Landscape Preservation," Norway; Department of Economics, University of Bergen 205, Department of Economics, University of Bergen.
    
    • Rolf Jens Brunstad & Ivar Gaasland & Erling Vårdal, 1999. "Agricultural Production and the Optimal Level of Landscape Preservation (," Land Economics, University of Wisconsin Press, vol. 75(4), pages 538-546.
13. Carlsson, Fredrik & Martinsson, Peter, 2001. "Do Hypothetical and Actual Marginal Willingness to Pay Differ in Choice Experiments?: Application to the Valuation of the Environment," Journal of Environmental Economics and Management, Elsevier, vol. 41(2), pages 179-192, March.
14. Hamilton, Stephen F. & Sunding, David L. & Zilberman, David, 2003. "Public goods and the value of product quality regulations: the case of food safety," Journal of Public Economics, Elsevier, vol. 87(3-4), pages 799-817, March.
15. Kevin J. Boyle & P. Joan Poor & Laura O. Taylor, 1999. "Estimating the Demand for Protecting Freshwater Lakes from Eutrophication," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 81(5), pages 1118-1122.

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Cited by:

1. Bicknell, Kathryn, 2010. "Economic Considerations of Animal Welfare Policy," 2010 Conference, August 26-27, 2010, Nelson, New Zealand 115718, New Zealand Agricultural and Resource Economics Society.
2. Tonsor, Glynn T. & Olynk, Nicole J. & Wolf, Christopher A., 2008. "Consumer Preferences for Animal Welfare Attributes: Case of Gestation Crates," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6062, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

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