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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, Louis-Georges

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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Bibliographic 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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References

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  1. Noussair, C.N. & Ruffieux, B. & Robin , S., 2004. "Revealing consumers' willingness to pay: A comparison of the BDM mechanism and the vickrey auction," Open Access publications from Tilburg University urn:nbn:nl:ui:12-377937, Tilburg University.
  2. Lusk,Jayson L. & Shogren,Jason F., 2007. "Experimental Auctions," Cambridge Books, Cambridge University Press, number 9780521855167.
  3. Charles Noussair & Stéphane Robin & Bernard Ruffieux, 2001. "Comportement des consommateurs face aux aliments «avec OGM» et «sans OGM»: une étude expérimentale," Économie rurale, Programme National Persée, vol. 266(1), pages 30-44.
  4. Anne Rozan, 2004. "Willingness-to-pay for food safety: an experimental investigation of quality certification on bidding behaviour," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 31(4), pages 409-425, December.
  5. Bohm, Peter & Linden, Johan & Sonnegard, Joakim, 1997. "Eliciting Reservation Prices: Becker-DeGroot-Marschak Mechanisms vs. Markets," Economic Journal, Royal Economic Society, vol. 107(443), pages 1079-89, July.
  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.
  7. 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.
  8. Cranfield, John A.L. & Magnusson, Erik, 2003. "Canadian Consumer's Willingness-To-Pay For Pesticide Free Food Products: An Ordered Probit Analysis," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association (IAMA), vol. 6(04).
  9. Chiara M. Travisi & Peter Nijkamp & Raymond J. G. M. Florax, 2004. "A Meta-Analysis of the Willingness to Pay for Reductions in Pesticide Risk Exposure," Working Papers 2004.101, Fondazione Eni Enrico Mattei.
  10. 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.
  11. Loureiro, Maria L., 2003. "Rethinking new wines: implications of local and environmentally friendly labels," Food Policy, Elsevier, vol. 28(5-6), pages 547-560.
  12. 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.
  13. Delmas, Magali A. & Grant, Laura E., 2008. "Eco-Labeling Strategies: The Eco-Premium Puzzle In The Wine Industry," Working Papers 37325, American Association of Wine Economists.
  14. Jason F. Shogren & John A. Fox, 1996. "Consumer Preferences for Fresh Food Items with Multiple Quality Attributes: Evidence from an Experimental Auction of Pork Chops," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(4), pages 916-923.
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Citations

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Cited by:
  1. Patrick Etievant & France Bellisle & Jean Dallongeville & Fabrice Etile & Elisabeth Guichard & Martine PADILLA & Monique Romon-Rousseaux, 2010. "Les comportements alimentaires. Quels en sont les déterminants ? Quelles actions, pour quels effets ? [Rapport d'expertise]," Working Papers 37803, Institut National de la Recherche Agronomique, France.
  2. Schmit, Todd M. & Taber, John T. & Rickard, Bradley J., 2012. "Consumer valuation of environmentally friendly production practices in wines considering asymmetric information and sensory effects," Working Papers 128813, Cornell University, Department of Applied Economics and Management.

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