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Animal Welfare and Eggs – Cheap Talk or Money on the Counter?

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  • Laura Mørch Andersen

    ()
    (Institute of Food and Resource Economics, University of Copenhagen)

Abstract

We estimate revealed willingness to pay for animal welfare using a panel mixed logit model. We utilize a unique household level panel, combining real purchases with survey data on perceived public and private good attributes of different types of eggs. We estimate willingness to pay for organic eggs controlling for trust in a positive connection between the public good animal welfare and the organic label and the private good food safety also connected to the label. Our results suggest that in the real world, animal welfare plays a minor role in the demand for agricultural products.

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File URL: http://okonomi.foi.dk/workingpapers/WPpdf/WP2010/WP_2010_06_animal_welfare_eggs_revised.pdf
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Bibliographic Info

Paper provided by University of Copenhagen, Department of Food and Resource Economics in its series IFRO Working Paper with number 2010/6.

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Length: 31 pages
Date of creation: May 2010
Date of revision: Apr 2011
Handle: RePEc:foi:wpaper:2010_06

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Web page: http://www.ifro.ku.dk/
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Related research

Keywords: animal welfare; panel mixed logit; market purchase data; labelling; willingness to pay; altruism;

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  1. John A. Fox & Jason F. Shogren & Dermot J. Hayes & James B. Kliebenstein, 1998. "CVM-X: Calibrating Contingent Values with Experimental Auction Markets," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(3), pages 455-465.
  2. John List & Jason Shogren, 1998. "Calibration of the difference between actual and hypothetical valuations in a field experiment," Natural Field Experiments 00296, The Field Experiments Website.
  3. Bjorner, Thomas Bue & Hansen, L.G.Lars Garn & Russell, Clifford S., 2004. "Environmental labeling and consumers' choice--an empirical analysis of the effect of the Nordic Swan," Journal of Environmental Economics and Management, Elsevier, vol. 47(3), pages 411-434, May.
  4. Norwood, F. Bailey & Lusk, Jayson L., 2011. "A calibrated auction-conjoint valuation method: Valuing pork and eggs produced under differing animal welfare conditions," Journal of Environmental Economics and Management, Elsevier, vol. 62(1), pages 80-94, July.
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Cited by:
  1. Saitone, Tina L. & Sexton, Richard J. & Sumner, Daniel A., 2013. "What Happens When Food Marketers Require Restrictive Farming Practices?," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 151268, Agricultural and Applied Economics Association.
  2. Christoph, Inken B. & Buergelt, Doreen & Salamon, Petra & Weible, Daniela & Zander, Katrin, 2012. "A Holistic Approach to Consumer Research on Expectations Regarding Animal Husbandry," 2012 International European Forum, February 13-17, 2012, Innsbruck-Igls, Austria 144963, International European Forum on Innovation and System Dynamics in Food Networks.
  3. Laura Mørch Andersen & Thomas Bøker Lund, 2011. "Digging deeper: How do different types of organic consumers influence the increasing organic market share?," IFRO Working Paper 2011/15, University of Copenhagen, Department of Food and Resource Economics.
  4. Lars Gårn Hansen & Laura Mørch Andersen, 2013. "Does Organic Crowding Out Influence Organic Food Demand? – evidence from a Danish micro panel," IFRO Working Paper 2013/2, University of Copenhagen, Department of Food and Resource Economics.
  5. Heng, Yan & Hanawa Peterson, Hikaru & Li, Xianghong, 2013. "Consumer Attitudes toward Farm-AnimalWelfare: The Case of Laying Hens," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 38(3), December.
  6. Allender, William J. & Richards, Timothy J., 2010. "Consumer Impact of Animal Welfare Regulation in the California Poultry Industry," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 35(3), December.
  7. Heng, Yan & Peterson, Hikaru Hanawa & Li, Xianghong, 2012. "Consumers’ Preferences for Shell Eggs Regarding Laying Hen Welfare," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124592, Agricultural and Applied Economics Association.
  8. Laura Mørch Andersen, 2013. "Obtaining reliable Likelihood Ratio tests from simulated likelihood functions," IFRO Working Paper 2013/1, University of Copenhagen, Department of Food and Resource Economics.

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