A Cost-Benefit Analysis of a Public Labelling Scheme of Fish Quality
AbstractThe purpose of this paper is to introduce a new method capable of evaluating the economic welfare for quality graded fish products using the hedonic price method for plaice in Denmark. Today no labelling scheme exists for the final consumers of different qualities of fish. A scheme does only exist at the first hand market. On this basis, a general applicable theoretical and empirical method is developed to compare the costs and benefits of the hypothetical choice between the total absence of labelling and the presence of a public label-ling scheme, which fully inform consumers on the quality and simultaneously allow the producers to differentiate prices between quality grades. It is shown that the economic welfare associated with a public labelling scheme is at mini-mum 263,000 euro. Sensitivity analysis shows that this result is robust. The pol-icy implication is that a public labelling scheme should not be implemented as the demand and cost functions have low elasticities, implying that the welfare gain is low.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by University of Southern Denmark, Department of Environmental and Business Economics in its series Working Papers with number 53/04.
Length: 35 pages
Date of creation: Jan 2004
Date of revision:
Co-integration; fish quality; hedonic pricing; public labelling scheme; welfare;
Find related papers by JEL classification:
- L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
- Q21 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Demand and Supply; Prices
- Q22 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Fishery
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Caswell, Julie A., 1998. "Valuing the benefits and costs of improved food safety and nutrition," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 42(4), December.
- Carson, Richard T. & Hanemann, W. Michael, 2006. "Contingent Valuation," Handbook of Environmental Economics, in: K. G. Mäler & J. R. Vincent (ed.), Handbook of Environmental Economics, edition 1, volume 2, chapter 17, pages 821-936 Elsevier.
- Shabbar Jaffry & Sean Pascoe & Catherine Robinson, 1999. "Long run price flexibilities for high valued UK fish species: a cointegration systems approach," Applied Economics, Taylor & Francis Journals, vol. 31(4), pages 473-481.
- Akerlof, George A, 1970. "The Market for 'Lemons': Quality Uncertainty and the Market Mechanism," The Quarterly Journal of Economics, MIT Press, vol. 84(3), pages 488-500, August.
- Wilen, James E., 2000. "Renewable Resource Economists and Policy: What Differences Have We Made?," Journal of Environmental Economics and Management, Elsevier, vol. 39(3), pages 306-327, May.
- Harrison, David Jr. & Rubinfeld, Daniel L., 1978. "Hedonic housing prices and the demand for clean air," Journal of Environmental Economics and Management, Elsevier, vol. 5(1), pages 81-102, March.
- Lewbel, Arthur, 1996. "Aggregation without Separability: A Generalized Composite Commodity Theorem," American Economic Review, American Economic Association, vol. 86(3), pages 524-43, June.
- Homans, Frances R. & Wilen, James E., 1997. "A Model of Regulated Open Access Resource Use," Journal of Environmental Economics and Management, Elsevier, vol. 32(1), pages 1-21, January.
- McConnell, Kenneth E., 1985. "The economics of outdoor recreation," Handbook of Natural Resource and Energy Economics, in: A. V. Kneese† & J. L. Sweeney (ed.), Handbook of Natural Resource and Energy Economics, edition 1, volume 2, chapter 15, pages 677-722 Elsevier.
- Frank Jensen & Max Nielsen & Eva Roth, 2003. "Application of the Inverse Almost Ideal Demand System to Welfare Analysis," Working Papers 43/03, University of Southern Denmark, Department of Environmental and Business Economics.
- Asche, F. & Bremnes, H. & Wessells, C.R., 1998.
"Product Aggregation, Market Integration and Relationships Between Prices: an Application to World Salmon Markets,"
27/98, Norwegian School of Economics and Business Administration-.
- Frank Asche & Helge Bremnes & Cathy R. Wessells, 1999. "Product Aggregation, Market Integration, and Relationships between Prices: An Application to World Salmon Markets," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 81(3), pages 568-581.
- Darby, Michael R & Karni, Edi, 1973. "Free Competition and the Optimal Amount of Fraud," Journal of Law and Economics, University of Chicago Press, vol. 16(1), pages 67-88, April.
- Nelson, Philip, 1974. "Advertising as Information," Journal of Political Economy, University of Chicago Press, vol. 82(4), pages 729-54, July/Aug..
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ulla H. Oehlenschläger).
If references are entirely missing, you can add them using this form.