Farm Animal Welfare - testing for market failure
AbstractOur 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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Bibliographic InfoPaper provided by University of Gothenburg, Department of Economics in its series Working Papers in Economics with number 119.
Length: 21 pages
Date of creation: 24 Nov 2003
Date of revision:
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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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Animal welfare; choice experiments; market failure;
Other versions of this item:
- D62 - Microeconomics - - Welfare Economics - - - Externalities
- Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
- Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy
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