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The market for animal welfare

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  • Jayson Lusk

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Abstract

Animal welfare is emerging as one of the most controversial issues in modern livestock agriculture. Although consumers can buy free range products in niche markets, some have argued that existing markets cannot solve the animal welfare dilemma because there are individuals who care about animal well-being who do not eat animal products. This paper proposes a market-based solution to at least partially manage animal welfare externalities. After discussing the current lack of market incentives to promote farm animal well-being, a potential scheme to quantify and trade units of farm animal well-being is proposed. The potential merits and efficacy of an animal welfare market are also discussed. Copyright The Author(s) 2011

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File URL: http://hdl.handle.net/10.1007/s10460-011-9318-x
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Bibliographic Info

Article provided by Springer in its journal Agriculture and Human Values.

Volume (Year): 28 (2011)
Issue (Month): 4 (December)
Pages: 561-575

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Handle: RePEc:spr:agrhuv:v:28:y:2011:i:4:p:561-575

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Web page: http://www.springer.com/economics/journal/10460

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Related research

Keywords: Animal rights; Cap and trade; Livestock; Niche markets; Vegetarian;

References

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  1. Fredrik Carlsson & Peter Frykblom & Carl Johan Lagerkvist, 2007. "Consumer willingness to pay for farm animal welfare: mobile abattoirs versus transportation to slaughter," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 34(3), pages 321-344, September.
  2. Baumol, William J, 1972. "On Taxation and the Control of Externalities," American Economic Review, American Economic Association, vol. 62(3), pages 307-22, June.
  3. Richard Schmalensee & Paul L. Joskow & A. Denny Ellerman & Juan Pablo Montero & Elizabeth M. Bailey, 1998. "An Interim Evaluation of Sulfur Dioxide Emissions Trading," Journal of Economic Perspectives, American Economic Association, vol. 12(3), pages 53-68, Summer.
  4. Jayson Lusk & Tomas Nilsson & Ken Foster, 2007. "Public Preferences and Private Choices: Effect of Altruism and Free Riding on Demand for Environmentally Certified Pork," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 36(4), pages 499-521, April.
  5. Norwood, F. Bailey & Lusk, Jayson L., 2011. "Compassion, by the Pound: The Economics of Farm Animal Welfare," OUP Catalogue, Oxford University Press, number 9780199551163.
  6. Robert N. Stavins, 1998. "What Can We Learn from the Grand Policy Experiment? Lessons from SO2 Allowance Trading," Journal of Economic Perspectives, American Economic Association, vol. 12(3), pages 69-88, Summer.
  7. Chilton, Susan M. & Burgess, Diane & Hutchinson, W. George, 2006. "The relative value of farm animal welfare," Ecological Economics, Elsevier, vol. 59(3), pages 353-363, September.
  8. Chang, Jae Bong & Lusk, Jayson L. & Norwood, F. Bailey, 2010. "The Price of Happy Hens: A Hedonic Analysis of Retail Egg Prices," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 35(3), December.
  9. Katie Abrams & Courtney Meyers & Tracy Irani, 2010. "Naturally confused: consumers’ perceptions of all-natural and organic pork products," Agriculture and Human Values, Springer, vol. 27(3), pages 365-374, September.
  10. Fama, Eugene F, 1970. "Efficient Capital Markets: A Review of Theory and Empirical Work," Journal of Finance, American Finance Association, vol. 25(2), pages 383-417, May.
  11. Tonsor, Glynn T. & Olynk, Nicole J. & Wolf, Christopher A., 2009. "Consumer Preferences for Animal Welfare Attributes: The Case of Gestation Crates," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 41(03), December.
  12. Craig A. Gallet, 2010. "Meat Meets Meta: A Quantitative Review of the Price Elasticity of Meat," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 92(1), pages 258-272.
  13. David Conner, 2004. "Expressing values in agricultural markets: An economic policy perspective," Agriculture and Human Values, Springer, vol. 21(1), pages 27-35, March.
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