Does living close to a vineyard increase the willingness-to-pay for organic and local wine?
AbstractThis paper investigates how the residents of a French wine-producing region value the attributes of wine. We elicit the willingness-to-pay for organic/non-organic and local/nonlocal wines when providing different informations about the impacts of agricultural practices. Organic and local premiums are estimated using robust M-regressions with clustered standard errors. The analysis shows that there is a significant organic premium associated with local and non-local wines, increasing with information level and decreasing with distance between participants’ dwellings and vineyards. We also ran some policy simulations to compare the welfare effects of regulatory instruments aimed at internalizing the attributes valued by consumers in possession of information.
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Bibliographic InfoPaper provided by INRA, Economie Publique in its series Working Papers with number 2014/03.
Date of creation: 10 Jul 2014
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Organic premium; local premium; experimental economics; wine consumption;
Find related papers by JEL classification:
- Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
- C90 - Mathematical and Quantitative Methods - - Design of Experiments - - - General
- R32 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Other Spatial Production and Pricing Analysis
- L66 - Industrial Organization - - Industry Studies: Manufacturing - - - Food; Beverages; Cosmetics; Tobacco
This paper has been announced in the following NEP Reports:
- NEP-AGR-2014-07-21 (Agricultural Economics)
- NEP-ALL-2014-07-21 (All new papers)
- NEP-MKT-2014-07-21 (Marketing)
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