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Consumer trust and willingness to pay for certified animal-friendly products

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Abstract

Increasing animal welfare standards requires changes along the supply chain which involve several stakeholders: scientists, farmers and people involved in transportation and slaughtering. The majority of researchers agree that compliance with these standards increases costs along the livestock value chain, especially for monitoring and certifying animal-friendly products. Knowledge of consumer willingness to pay (WTP) in such a decision context is paramount to understanding the magnitude of market incentives necessary to compensate all involved stakeholders. The market outcome of certification programs is dependent on consumer trust. Particularly, there is a need to understand to what extent consumers believe that stakeholders operating in the animal-friendly supply chain will respect certification standards. We examine these issues using a contingent valuation survey administered in five economically dominant EU countries. The implied WTP estimates are found to be sensitive to robust measures of consumer trust for certified animal-friendly products. Significant differences across countries are discussed.

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File URL: ftp://mngt.waikato.ac.nz/RePEc/wai/econwp/0709.pdf
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Bibliographic Info

Paper provided by University of Waikato, Department of Economics in its series Working Papers in Economics with number 07/09.

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Length: 25 pages
Date of creation: 28 May 2007
Date of revision:
Handle: RePEc:wai:econwp:07/09

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Keywords: Animal welfare ; Certification ; Consumer trust ; Contingent Valuation ; Willingness to Pay ; Budget approach ;

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Cited by:
  1. Erdem, Seda & Rigby, Dan, 2011. "Using a Discrete Choice Experiment to Elicit Consumers’ WTP for Health Risk Reductions Achieved By Nanotechnology in the UK," 85th Annual Conference, April 18-20, 2011, Warwick University, Coventry, UK 108950, Agricultural Economics Society.
  2. Makdisi, Fadi & Marggraf, Rainer, 2011. "Consumer Willingness-To-Pay For Farm Animal Welfare In Germany - The Case Of Broiler," 51st Annual Conference, Halle, Germany, September 28-30, 2011 115359, German Association of Agricultural Economists (GEWISOLA).

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