IDEAS home Printed from https://ideas.repec.org/p/ags/iaae18/277079.html
   My bibliography  Save this paper

Implicit Prices of Sustainability Characteristics in Foods: the Case of the German Online Market for Honey

Author

Listed:
  • Herrmann, R.
  • Bissinger, K.
  • Krandick, L.

Abstract

Sustainability characteristics play an increasing role in food markets. At least some consumers are willing to pay a price for organic or regional production, animal welfare or fairtrade. In order to analyze implicit prices of sustainability characteristics, it is important to go beyond consumer studies as such characteristics do affect marginal costs as well. We employ a hedonic price analysis in order to compare price premia of very different sustainability characteristics on the German online market for honey. Honey is particularly interesting as it is perceived as a natural product and regional and organic production competes, e.g., with fairtrade products from developing countries. It is striking that consumer prices for honey contain positive as well as negative implicit prices for sustainability characteristics. Apparently, consumer valuation in terms of the marginal willingness to pay as well as marginal costs differ strongly across the sustainability characteristics. Acknowledgement :

Suggested Citation

  • Herrmann, R. & Bissinger, K. & Krandick, L., 2018. "Implicit Prices of Sustainability Characteristics in Foods: the Case of the German Online Market for Honey," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277079, International Association of Agricultural Economists.
  • Handle: RePEc:ags:iaae18:277079
    DOI: 10.22004/ag.econ.277079
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/277079/files/842.pdf
    Download Restriction: no

    File URL: https://libkey.io/10.22004/ag.econ.277079?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Adalja, Aaron & Hanson, James & Towe, Charles & Tselepidakis, Elina, 2015. "An Examination of Consumer Willingness to Pay for Local Products," Agricultural and Resource Economics Review, Cambridge University Press, vol. 44(3), pages 253-274, December.
    2. Deselnicu, Oana C. & Costanigro, Marco & Souza-Monteiro, Diogo M. & McFadden, Dawn Thilmany, 2013. "A Meta-Analysis of Geographical Indication Food Valuation Studies: What Drives the Premium for Origin-Based Labels?," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 38(2), pages 1-16, August.
    3. Maria Luz Loureiro & Jill J. McCluskey, 2000. "Assessing consumer response to protected geographical identification labeling," Agribusiness, John Wiley & Sons, Ltd., vol. 16(3), pages 309-320.
    4. Chung L. Huang & Biing-Hwan Lin, 2007. "A Hedonic Analysis of Fresh Tomato Prices among Regional Markets," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 29(4), pages 783-800.
    5. repec:ags:afjare:225657 is not listed on IDEAS
    6. White, Halbert, 1980. "A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for Heteroskedasticity," Econometrica, Econometric Society, vol. 48(4), pages 817-838, May.
    7. Shang Wu & Jacob R. Fooks & Kent D. Messer & Deborah Delaney, 2015. "Consumer demand for local honey," Applied Economics, Taylor & Francis Journals, vol. 47(41), pages 4377-4394, September.
    8. Rosen, Sherwin, 1974. "Hedonic Prices and Implicit Markets: Product Differentiation in Pure Competition," Journal of Political Economy, University of Chicago Press, vol. 82(1), pages 34-55, Jan.-Feb..
    9. Efken, Josef & Bernhardt, Angelina, 2016. "Studie über die Erzeugungs- und Vermarktungsstruktur des Bienenzuchtsektors in Deutschland," Thünen Working Paper 249851, Johann Heinrich von Thünen-Institut (vTI), Federal Research Institute for Rural Areas, Forestry and Fisheries.
    10. Ivo A. van der Lans & Koert van Ittersum & Antonella De Cicco, 2001. "The role of the region of origin and EU certificates of origin in consumer evaluation of food products," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 28(4), pages 451-478, December.
    11. Van Loo, Ellen J. & Caputo, Vincenzina & Nayga, Rodolfo M. & Verbeke, Wim, 2014. "Consumers’ valuation of sustainability labels on meat," Food Policy, Elsevier, vol. 49(P1), pages 137-150.
    12. Carl Johan Lagerkvist & Sebastian Hess, 2011. "A meta-analysis of consumer willingness to pay for farm animal welfare," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 38(1), pages 55-78, March.
    13. Cosmina, Marta & Gallenti, Gianluigi & Marangon, Francesco & Troiano, Stefania, 2015. "Attitudes towards honey among Italian consumers: a choice experiment approach," 143rd Joint EAAE/AAEA Seminar, March 25-27, 2015, Naples, Italy 202733, European Association of Agricultural Economists.
    14. Grunert, Klaus G. & Hieke, Sophie & Wills, Josephine, 2014. "Sustainability labels on food products: Consumer motivation, understanding and use," Food Policy, Elsevier, vol. 44(C), pages 177-189.
    15. Lusk, Jayson L. & Roosen, Jutta & Shogren, Jason (ed.), 2011. "The Oxford Handbook of the Economics of Food Consumption and Policy," OUP Catalogue, Oxford University Press, number 9780199569441.
    16. Halvorsen, Robert & Palmquist, Raymond, 1980. "The Interpretation of Dummy Variables in Semilogarithmic Equations," American Economic Review, American Economic Association, vol. 70(3), pages 474-475, June.
    17. 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), pages 1-18, December.
    18. George A. Akerlof, 1970. "The Market for "Lemons": Quality Uncertainty and the Market Mechanism," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 84(3), pages 488-500.
    19. John Cranfield & B. James Deaton & Shreenivas Shellikeri, 2009. "Evaluating Consumer Preferences for Organic Food Production Standards," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 57(1), pages 99-117, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Herrmann, Roland & Bissinger, Katharina & Krandick, Lisa, 2018. "Price Premia for Sustainability Characteristics in Foods: Measurement Matters!," 2018 International European Forum (163rd EAAE Seminar), February 5-9, 2018, Innsbruck-Igls, Austria 276855, International European Forum on System Dynamics and Innovation in Food Networks.
    2. Matthias Staudigel & Aleksej Trubnikov, 2022. "High price premiums as barriers to organic meat demand? A hedonic analysis considering species, cut and retail outlet," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 66(2), pages 309-334, April.
    3. Bleich, Simon & Herrmann, Roland, 2013. "Price versus Non-price Incentives for Participation in Quality Labeling: The Case of the German Fruit Juice Industry," International Journal on Food System Dynamics, International Center for Management, Communication, and Research, vol. 4(1), pages 1-13, July.
    4. Garavaglia, Christian & Mariani, Paolo, 2015. "How Much Do Consumers Value PDO Certifications? Estimates of WTP for PDO Dry-Cured Ham in Italy," 145th Seminar, April 14-15, 2015, Parma, Italy 200376, European Association of Agricultural Economists.
    5. Bissinger, Katharina & Herrmann, Roland & Krandick, Lisa, 2019. "Implicit Prices of Sustainability on the German Online Market for Honey," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 68(3), September.
    6. Irz, Xavier & Mazzocchi, Mario & Réquillart, Vincent & Soler, Louis-Georges, 2015. "Research in Food Economics: past trends and new challenges," Revue d'Etudes en Agriculture et Environnement, Editions NecPlus, vol. 96(01), pages 187-237, March.
    7. Petjon Ballco & Fatma Jaafer & Tiziana de Magistris, 2022. "Investigating the price effects of honey quality attributes in a European country: Evidence from a hedonic price approach," Agribusiness, John Wiley & Sons, Ltd., vol. 38(4), pages 885-904, October.
    8. Asche, Frank & Bronnmann, Julia & Cojocaru, Andreea L., 2021. "The value of responsibly farmed fish: A hedonic price study of ASC-certified whitefish," Ecological Economics, Elsevier, vol. 188(C).
    9. Christian Garavaglia & Paolo Mariani, 2017. "How Much Do Consumers Value Protected Designation of Origin Certifications? Estimates of willingness to Pay for PDO Dry‐Cured Ham in Italy," Agribusiness, John Wiley & Sons, Ltd., vol. 33(3), pages 403-423, June.
    10. Steven S. Vickner, 2015. "Estimating the Implicit Price of Convenience: A Hedonic Analysis of the US Breakfast Sausage Market," Agribusiness, John Wiley & Sons, Ltd., vol. 31(2), pages 281-292, April.
    11. Ankamah-Yeboah, Isaac & Nielsen, Max & Nielsen, Rasmus, 2016. "Price premium of organic salmon in Danish retail sale," Ecological Economics, Elsevier, vol. 122(C), pages 54-60.
    12. Allan Beltrán & David Maddison & Robert J. R. Elliott, 2018. "Assessing the Economic Benefits of Flood Defenses: A Repeat‐Sales Approach," Risk Analysis, John Wiley & Sons, vol. 38(11), pages 2340-2367, November.
    13. Fluvià, Modest & Rigall-I-Torrent, Ricard & Espinet, Josep Maria & Garriga, Anna & Saló, Albert, 2011. "Precios implícitos de los atributos de los productos turísticos: ¿Qué esconde el efecto de la localización?/Implicit Prices of the Attributes of Tourism Products: What is Hidden Behind Location?," Estudios de Economia Aplicada, Estudios de Economia Aplicada, vol. 29, pages 781-802, Diciembre.
    14. Yokessa, Maïmouna & Marette, Stéphan, 2019. "A Review of Eco-labels and their Economic Impact," International Review of Environmental and Resource Economics, now publishers, vol. 13(1-2), pages 119-163, April.
    15. Daniel, Vanessa E. & Florax, Raymond J.G.M. & Rietveld, Piet, 2009. "Flooding risk and housing values: An economic assessment of environmental hazard," Ecological Economics, Elsevier, vol. 69(2), pages 355-365, December.
    16. Bonanno, Alessandro & Bimbo, Francesco & Costanigro, Marco & VIscecchia, Rosaria, 2018. "Do Geographic Indication Labels Pay off? Estimating GI’s implicit Price Dispersion in the Italian EVOO Market," 2018 Annual Meeting, August 5-7, Washington, D.C. 274203, Agricultural and Applied Economics Association.
    17. Empen, Janine, 2011. "Preissetzung Auf Dem Deutschen Joghurtmarkt: Eine Hedonische Analyse," 51st Annual Conference, Halle, Germany, September 28-30, 2011 115362, German Association of Agricultural Economists (GEWISOLA).
    18. Yu Jiang & H. Holly Wang & Shaosheng Jin & Michael S. Delgado, 2019. "The Promising Effect of a Green Food Label in the New Online Market," Sustainability, MDPI, vol. 11(3), pages 1-14, February.
    19. Tomislav Vukina & Danijel Nestic, 2020. "Paying for animal welfare? A hedonic analysis of egg prices," Agribusiness, John Wiley & Sons, Ltd., vol. 36(4), pages 613-630, October.
    20. Alessandro Bonanno, 2016. "A Hedonic Valuation of Health and Nonhealth Attributes in the U.S. Yogurt Market," Agribusiness, John Wiley & Sons, Ltd., vol. 32(3), pages 299-313, July.

    More about this item

    Keywords

    Demand and Price Analysis;

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:iaae18:277079. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/iaaeeea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.