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An experimental study of wine consumers’ willingness to pay for environmental characteristics

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Author Info
Bazoche, P.
Deola, C.
Soler, L.G.

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Abstract

The reduction of pesticides use is becoming a priority for the public authorities in many countries. We conducted an experiment with wine consumers to see whether end-consumers value the dissemination of information about environmentally-friendly production practices. The experiment was devised to (i) evaluate whether there is a premium for environmentally-friendly wines, (ii) determine whether or not consumers are sensitive to label owners who implement and guarantee the environmental actions, (iii) and assess the impact of public messages about the consequences of pesticide use. Some 139 participants were divided randomly into two groups. One group had no specific information about the current state of pesticide use in farming. The other group was given information about pesticide use in farming before making their valuations. Becker-DeGroot-Marshak mechanisms revealed that (i) the environmental signal is valued differently depending on who conveyed the information, and that (ii)dissemination of information about the environmental repercussions of farming methods does not significantly affect willingness-to-pay.

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Publisher Info
Paper provided by European Association of Agricultural Economists in its series 2008 International Congress, August 26-29, 2008, Ghent, Belgium with number 43651.

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Date of creation: 2008
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Handle: RePEc:ags:eaae08:43651

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Related research
Keywords: Willingness to pay; Wine; Effect of information; Experimental economics; Environment; Demand and Price Analysis; Food Consumption/Nutrition/Food Safety;

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  1. Loureiro, Maria L., 2003. "Rethinking new wines: implications of local and environmentally friendly labels," Food Policy, Elsevier, vol. 28(5-6), pages 547-560. [Downloadable!] (restricted)
  2. Roosen, Jutta & Fox, John A. & Hennessy, David A. & Schreiber, Alan, 1998. "Consumers' Valuation Of Insecticide Use Restrictions: An Application To Apples," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 23(02), December. [Downloadable!]
  3. Noussair, Charles & Robin, Stephane & Ruffieux, Bernard, 2004. "Revealing consumers' willingness-to-pay: A comparison of the BDM mechanism and the Vickrey auction," Journal of Economic Psychology, Elsevier, vol. 25(6), pages 725-741, December. [Downloadable!] (restricted)
  4. Shogren, Jason F. & Seung Y. Shin & Dermot J. Hayes & James B. Kliebenstein, 1994. "Resolving Differences in Willingness to Pay and Willingness to Accept," American Economic Review, American Economic Association, vol. 84(1), pages 255-70, March.
  5. repec:cup:cbooks:9780521855167 is not listed on IDEAS
  6. Misra, Sukant K. & Huang, Chung L. & Ott, Stephen L., 1991. "Consumer Willingness To Pay For Pesticide-Free Fresh Produce," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 16(02), December. [Downloadable!]
  7. Anne Rozan & Anne Stenger & Marc Willinger, 2004. "Willingness-to-pay for food safety: an experimental investigation of quality certification on bidding behaviour," Framed Field Experiments 0065, The Field Experiments Website.
  8. Florax, Raymond & Travisi, Chiara & Nijkamp, Peter, 2005. "A Meta-Analysis of the Willingness to Pay for Reductions in Pesticide Risk Exposure," 2005 Annual meeting, July 24-27, Providence, RI 19524, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
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  9. Erik Magnusson & J. A. L. Cranfield, 2005. "Consumer Demand for Pesticide Free Food Products in Canada: A Probit Analysis," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 53(1), pages 67-81, 03. [Downloadable!] (restricted)
  10. Anne Rozan, 2004. "Willingness-to-pay for food safety: an experimental investigation of quality certification on bidding behaviour," European Review of Agricultural Economics, Oxford University Press for the Foundation for the European Review of Agricultural Economics, vol. 31(4), pages 409-425, December.
  11. Sebastien Lecocq & Thierry Magnac & Marie-Claude Pichery & Michael Visser, 2004. "The impact of information on wine auction prices: results of an experiment," Research Unit Working Papers 0401, Laboratoire d'Economie Appliquee, INRA. [Downloadable!]
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