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Consumer willingness to pay for farm animal welfare - transportation of farm animals to slaughter versus the use of mobile abattoirs

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Author Info

  • Carlsson, Fredrik

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

  • Frykblom, Peter

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

  • Lagerkvist, Carl Johan

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

Abstract

This study employed a choice experiment (CE) to ascertain consumer preferences and willingness to pay (WTP) for non-market food product quality attributes. Data were obtained from a large mail survey and estimated with a random parameter logit model. The results indicate that Swedish consumers place greater monetary worth on the use of mobile abattoirs for cattle than for pigs, and even place a negative monetary value for mobile abattoirs in broiler production. We show how CE data can be used to estimate individual WTP, using a random parameter logit model. We find that there is a substantial difference in heterogeneity between consumers WTP for mobile abattoirs for the types of livestock included. Based on estimated distributions of WTP and available cost estimates, the market share for mobile abattoirs is predicted. The approach taken is vital to agribusinesses intending to serve specialized niche markets. Our results are useful for forming product differentiation strategies within the food industry as well as for the formation of food policy.

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File URL: http://hdl.handle.net/2077/2754
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Bibliographic Info

Paper provided by University of Gothenburg, Department of Economics in its series Working Papers in Economics with number 149.

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Length: 24 pages
Date of creation: 18 Nov 2004
Date of revision:
Handle: RePEc:hhs:gunwpe:0149

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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Related research

Keywords: Animal welfare; Choice experiments; Slaughter; Willingness to pay;

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References

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  1. Louviere,Jordan J. & Hensher,David A. & Swait,Joffre D. With contributions by-Name:Adamowicz,Wiktor, 2000. "Stated Choice Methods," Cambridge Books, Cambridge University Press, number 9780521788304.
  2. Cameron, Trudy Ann & Poe, Gregory L. & Ethier, Robert G. & Schulze, William D., 2002. "Alternative Non-market Value-Elicitation Methods: Are the Underlying Preferences the Same?," Journal of Environmental Economics and Management, Elsevier, vol. 44(3), pages 391-425, November.
  3. Winter, M. & Fry, C. & Carruthers, S. P., 1998. "European agricultural policy and farm animal welfare," Food Policy, Elsevier, vol. 23(3-4), pages 305-323, November.
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  6. Jayson L. Lusk & Darren Hudson, 2004. "Willingness-to-Pay Estimates and Their Relevance to Agribusiness Decision Making," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 26(2), pages 152-169.
  7. Swait, Joffre & Adamowicz, Wiktor, 2001. " The Influence of Task Complexity on Consumer Choice: A Latent Class Model of Decision Strategy Switching," Journal of Consumer Research, University of Chicago Press, vol. 28(1), pages 135-48, June.
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  9. 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.
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  15. Johansson-Stenman , Olof & Svedsäter, Henrik, 2003. "Self Image And Choice Experiments: Hypothetical And Actual Willingness To Pay," Working Papers in Economics 94, University of Gothenburg, Department of Economics.
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  19. Jayson Lusk & T Schroeder, 2004. "Are choice experiments incentive compatible? A test with quality differentiated beef steaks," Artefactual Field Experiments 00096, The Field Experiments Website.
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Citations

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Cited by:
  1. Liljenstolpe, Carolina, 2005. "Valuing Animal Welfare with Choice Experiments: An Application to Swedish Pig Production," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24503, European Association of Agricultural Economists.
  2. Carolina Liljenstolpe, 2008. "Evaluating animal welfare with choice experiments: an application to Swedish pig production," Agribusiness, John Wiley & Sons, Ltd., vol. 24(1), pages 67-84.
  3. Theuvsen, Ludwig & Essmann, Sandra & Brand-Sassen, Henning, 2005. "Livestock Husbandry between Ethics and Economics: Finding a Feasible Way Out by Target Costing?," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24598, European Association of Agricultural Economists.

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