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Public Preferences and Private Choices: Effect of Altruism and Free Riding on Demand for Environmentally Certified Pork

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Author Info
Jayson Lusk ()
Tomas Nilsson
Ken Foster

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Abstract

Sales of private goods with affiliated public good attributes have markedly risen in recent years. This fact is difficult to explain within the paradigm of purely self-interested behavior. This paper investigates factors influencing consumer demand for pork products with certifications related to the environment, animal welfare, and antibiotics. Using psychometric scaling techniques, we measure individuals’ degree of altruism and propensity toward free riding. Results of a random parameter logit model applied to choice data obtained from a nationwide survey in the United States indicates that more altruistic individuals are willing to pay more for pork products with public good attributes than less altruistic individuals and free riders. These results indicate that private purchases of goods with public-good attributes are not simply a result of individuals’ perceptions of the ability to mitigate private risks such as food safety, but that individuals are making private choices to affect public outcomes. Results have implications for policy makers weighing the relative costs and benefits of food labeling policies versus bans related to certain livestock production practices. Copyright Springer Science+Business Media, Inc. 2007

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File URL: http://hdl.handle.net/10.1007/s10640-006-9039-6
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Publisher Info
Article provided by European Association of Environmental and Resource Economists in its journal Environmental and Resource Economics.

Volume (Year): 36 (2007)
Issue (Month): 4 (April)
Pages: 499-521
Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Handle: RePEc:kap:enreec:v:36:y:2007:i:4:p:499-521

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Web page: http://www.springerlink.com/link.asp?id=100263

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  1. Tonsor, Glynn T. & Olynk, Nicole & Wolf, Christopher, 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). [Downloadable!]
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