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Willingness to Pay for Organic Foods: A Comparison between Survey Data and Panel Data from Denmark

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  • Katrin, Millock
  • Hansen, Lars Gårn

Abstract

We present a project aiming at estimating the willingness to pay for organic foods through panel data and a survey. The panel data is based on weekly reporting of household purchases by 2000 Danish households with information on their demographic and socio-economic characteristics. Detailed information on organic foods exist from 1997. A questionnaire asking consumers to distinguish and rank various food attributes will be sent out to all households in the sample in June 2002. For survey purposes, organic foods are defined as products carrying the Danish state label guaranteeing public control and certification of organic production. The food product attributes include environmental concerns, animal welfare, and food safety (health concerns). Here we present the results from the pilot study sent out in 2001 to 400 randomly chosen households, representatively distributed on geographical regions however. Among the results we note that the order of valued attributes do not differ across organic product types and that avoidance of chemicals is the highest valued attribute. We also present some preliminary estimations on purchase data in order to compare the contingent valuation results with observed willingness to pay. Both valuation methods entail uncertainty, and a comparison may indicate the magnitude of this.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 47588.

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Date of creation: 2002
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Handle: RePEc:pra:mprapa:47588

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Keywords: Willingness to Pay Organic Foods;

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References

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  1. Gary D. Thompson, 1998. "Consumer Demand for Organic Foods: What We Know and What We Need to Know," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(5), pages 1113-1118.
  2. Carson, Richard T. & Flores, Nicholas E. & Martin, Kerry M. & Wright, Jennifer L., 1995. "Contingent Valuation and Revealed Preference Methodologies: Comparing the Estimates for Quasi-Public Goods," 1995 Conference (39th), February 14-16, 1995, Perth, Australia 148793, Australian Agricultural and Resource Economics Society.
  3. Glaser, Lewrene K. & Thompson, Gary D., 2000. "Demand For Organic And Conventional Beverage Milk," 2000 Annual Meeting, June 29-July 1, 2000, Vancouver, British Columbia 36346, Western Agricultural Economics Association.
  4. Frykblom, Peter, 1997. "Hypothetical Question Modes and Real Willingness to Pay," Journal of Environmental Economics and Management, Elsevier, vol. 34(3), pages 275-287, November.
  5. Wier, Mette & Hansen, Lars Gårn & Smed, Sinne, 2001. "Explaining Demand for Organic Foods," MPRA Paper 48363, University Library of Munich, Germany.
  6. McCluskey, Jill J., 1999. "A Game Theoretic Approach to Organic Foods: An Analysis of Asymmetric Information and Policy," 2000 Conference (44th), January 23-25, 2000, Sydney, Australia 123706, Australian Agricultural and Resource Economics Society.
  7. Patrick J. Byrne & J. Richard Bacon & Ulrich C. Toensmeyer, 1994. "Pesticide residue concerns and shopping location likelihood," Agribusiness, John Wiley & Sons, Ltd., vol. 10(6), pages 491-501.
  8. Jolly, Desmond A., 1991. "Differences Between Buyers and Nonbuyers of Organic Produce and Willingness to Pay Organic Price Premiums," Journal of Agribusiness, Agricultural Economics Association of Georgia, vol. 9(1).
  9. Glaser, Lewrene K. & Thompson, Gary D., 1999. "Demand For Organic And Conventional Frozen Vegetables," 1999 Annual meeting, August 8-11, Nashville, TN 21583, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  10. Cummings, Ronald G & Harrison, Glenn W & Rutstrom, E Elisabet, 1995. "Homegrown Values and Hypothetical Surveys: Is the Dichotomous Choice Approach Incentive-Compatible?," American Economic Review, American Economic Association, vol. 85(1), pages 260-66, March.
  11. Kramer, Carol S., 1990. "Food Safety: The Consumer Side Of The Environmental Issue," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 22(01), July.
  12. Huang, Chung L, 1996. "Consumer Preferences and Attitudes towards Organically Grown Produce," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 23(3), pages 331-42.
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Cited by:
  1. Saunders, Caroline M. & Emanuelsson, Martin, 2005. "ARGOS - Modelling the Economic, Environmental, and Social Implications for New Zealand from Different Scenarios Relating to the Demand and Supply of Organic Products," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24724, European Association of Agricultural Economists.
  2. Atanasoaie George Sebastian, 2013. "The Price On The Organic Product Market," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 4, pages 100-106, August.
  3. Wheeler, Sarah Ann, 2008. "What influences agricultural professionals' views towards organic agriculture?," Ecological Economics, Elsevier, vol. 65(1), pages 145-154, March.
  4. Razzolini, Tiziano, 2013. "How much trustworthy and salubrious an organic jam should be? The impact of organic logo on the Italian jam market," Food Policy, Elsevier, vol. 43(C), pages 1-13.
  5. Saunders, Caroline M. & Emanuelsson, Martin, 2005. "Modelling the implications for New Zealand trade and producer returns from different scenarios relating to the demand and supply of organic products," 2005 Conference (49th), February 9-11, 2005, Coff's Harbour, Australia 137946, Australian Agricultural and Resource Economics Society.
  6. Probst, Lorenz & Houedjofonon, Elysée & Ayerakwa, Hayford Mensah & Haas, Rainer, 2012. "Will they buy it? The potential for marketing organic vegetables in the food vending sector to strengthen vegetable safety: A choice experiment study in three West African cities," Food Policy, Elsevier, vol. 37(3), pages 296-308.

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