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Farm Animal Welfare - testing for market failure

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Author Info

  • Carlsson, Fredrik

    ()
    (Department of Economics, School of Economics and Commercial Law, Göteborg University)

  • Frykblom, Peter

    (Department of Economics, Appalachian State University)

  • Lagerkvist, Carl-Johan

    ()
    (Department of Economics, Swedish University of Agricultural Sciences)

Abstract

Our increasingly heterogeneous food is at least partly due to concerns over conventional production of farm livestock. Some of these new products have been demand driven while others are a result of politically decided restrictions on production techniques. From a policy perspective, the interesting question is whether there exists a market failure. We suggest a survey design that enables the researcher to measure the eventual external market failures in farm livestock production. Applying this survey design to the question of battery cages in egg production, we cannot show that there exists a market failure. The policy implications are applicable to not only the question of egg production, they can be extended to a general discussion of how potential market failures for all kind of farm livestock should be managed. Logically, if an external effect cannot be shown, the consumer is better off herself making the choice of how her food is produced.

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File URL: http://hdl.handle.net/2077/2810
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Bibliographic Info

Paper provided by University of Gothenburg, Department of Economics in its series Working Papers in Economics with number 119.

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Length: 21 pages
Date of creation: 24 Nov 2003
Date of revision:
Handle: RePEc:hhs:gunwpe:0119

Contact details of provider:
Postal: Department of Economics, School of Business, Economics and Law, University of Gothenburg, Box 640, SE 405 30 GÖTEBORG, Sweden
Phone: 031-773 10 00
Web page: http://www.handels.gu.se/econ/
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Keywords: Animal welfare; choice experiments; market failure;

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References

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  1. Jayson L. Lusk & Ted C. Schroeder, 2004. "Are Choice Experiments Incentive Compatible? A Test with Quality Differentiated Beef Steaks," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(2), pages 467-482.
  2. repec:feb:artefa:0067 is not listed on IDEAS
  3. Train,Kenneth E., 2009. "Discrete Choice Methods with Simulation," Cambridge Books, Cambridge University Press, number 9780521766555, April.
  4. Jensen, Helen H. & Yen, Steven & Wang, Qingbin, 1996. "Cholesterol Information and Egg Consumption in the U.S.: A Nonnormal and Heteroscedastic Double Hurdle Model," Staff General Research Papers 1056, Iowa State University, Department of Economics.
  5. Hamilton, Stephen F. & Sunding, David L. & Zilberman, David, 2003. "Public goods and the value of product quality regulations: the case of food safety," Journal of Public Economics, Elsevier, vol. 87(3-4), pages 799-817, March.
  6. David Revelt & Kenneth Train, 1998. "Mixed Logit With Repeated Choices: Households' Choices Of Appliance Efficiency Level," The Review of Economics and Statistics, MIT Press, vol. 80(4), pages 647-657, November.
  7. Rolf Jens Brunstad & Ivar Gaasland & Erling Vårdal, 1999. "Agricultural Production and the Optimal Level of Landscape Preservation (," Land Economics, University of Wisconsin Press, vol. 75(4), pages 538-546.
  8. Alpizar, Francisco & Carlsson, Fredrik & Martinsson, Peter, 2001. "Using Choice Experiments for Non-Market Valuation," Working Papers in Economics 52, University of Gothenburg, Department of Economics.
  9. Richard Bennett, 1995. "The Value Of Farm Animal Welfare," Journal of Agricultural Economics, Wiley Blackwell, vol. 46(1), pages 46-60.
  10. Kenneth E. Train, 1998. "Recreation Demand Models with Taste Differences over People," Land Economics, University of Wisconsin Press, vol. 74(2), pages 230-239.
  11. Richard Bennett & Douglas Larson, 1996. "Contingent Valuation Of The Perceived Benefits Of Farm Animal Welfare Legislation: An Exploratory Survey," Journal of Agricultural Economics, Wiley Blackwell, vol. 47(1-4), pages 224-235.
  12. Kevin J. Boyle & P. Joan Poor & Laura O. Taylor, 1999. "Estimating the Demand for Protecting Freshwater Lakes from Eutrophication," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 81(5), pages 1118-1122.
  13. Louviere,Jordan J. & Hensher,David A. & Swait,Joffre D., 2000. "Stated Choice Methods," Cambridge Books, Cambridge University Press, number 9780521788304, April.
  14. Bennett, R. M., 1997. "Farm animal welfare and food policy," Food Policy, Elsevier, vol. 22(4), pages 281-288, August.
  15. Carlsson, Fredrik & Martinsson, Peter, 2001. "Do Hypothetical and Actual Marginal Willingness to Pay Differ in Choice Experiments?: Application to the Valuation of the Environment," Journal of Environmental Economics and Management, Elsevier, vol. 41(2), pages 179-192, March.
  16. Daniel McFadden & Kenneth Train, 2000. "Mixed MNL models for discrete response," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 15(5), pages 447-470.
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Citations

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Cited by:
  1. Tonsor, Glynn T. & Olynk, Nicole J. & Wolf, Christopher A., 2008. "Consumer Preferences for Animal Welfare Attributes: Case of Gestation Crates," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6062, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  2. Tonsor, Glynn T. & Wolf, Christopher A., 2011. "On mandatory labeling of animal welfare attributes," Food Policy, Elsevier, vol. 36(3), pages 430-437, June.
  3. Bicknell, Kathryn, 2010. "Economic Considerations of Animal Welfare Policy," 2010 Conference, August 26-27, 2010, Nelson, New Zealand 115718, New Zealand Agricultural and Resource Economics Society.
  4. Lu, Yiqing & Cranfield, John & Widowski, Tina, 2013. "Consumer Preference for Eggs from Enhanced Animal Welfare Production System: A Stated Choice Analysis," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150276, Agricultural and Applied Economics Association.

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